China’s LNG demand to drop amid coronavirus outbreak

China’s LNG demand to drop amid coronavirus outbreak

BAKU, Azerbaijan, Feb.23

By Leman Zeynalova – Trend:

Calculating the impact of the coronavirus, independent energy research and consulting firm Rystad Energy has revised its growth estimate for Chinese LNG demand this year, limiting it to 4.7 percent compared to 2019, Trend reports.

Previously, Rystad Energy expected Chinese demand to rise 10-13 percent year on year.

"Given the strictest lockdowns of cities and factories, the Chinese government is trying by all means to end the outbreak as quickly as possible, so we see a speedy economic recovery later this year and a return to growth in LNG imports. However, the growth rate is expected to be much lower than previously predicted, mainly due to the industrial sector. The largest gas consumer in China is undergoing a heavy hit," said Xi Nan, Vice President for Gas and Power Markets at Rystad Energy.

The situation is exacerbated by China’s top LNG importer, CNOOC, declaring force majeure to free itself from some international contractual obligations to receive LNG, and PetroChina delaying the discharge of cargoes, due to uncertain downstream demand and a shortage of workers because of the epidemic.

Rystad Energy expects a reduction or even a complete removal of tariffs on imports of US LNG, given the phase-one deal of $52.4 billion additional purchase (from 2017 level) of US energy goods agreed on 15 January between the parties. Such a development would help China increase LNG imports from the US and add a positive sentiment to the market this year, singlehandedly preventing a demand decline in the country, Xi adds.

As the spread of the coronavirus does not yet appear to be slowing down, concerns are rising among LNG sellers. If more Chinese companies cancel or defer importing LNG volumes from term contracts, and if the spot price then falls further, sellers may face even greater pressure from buyers wanting to renegotiate existing contracts or hesitating to sign new ones.

---

Follow the author on Twitter: @Lyaman_Zeyn

Uzbekistan reveals COVID-19 data for May 10
Uzbekistan reveals COVID-19 data for May 10
Kazakhstan becomes main importer of Uzbek cars
Kazakhstan becomes main importer of Uzbek cars
Uzbekistan increases export of textile products
Uzbekistan increases export of textile products
Loading Bars
Latest
Azerbaijani president visits monument to National Leader Heydar Aliyev in Nakhchivan
President Ilham Aliyev attends opening of military airfield of Combined Arms Division
Artists of Int'l Arts Festival create 'Kharybulbul' model in Azerbaijan's liberated lands (PHOTO)
President Aliyev attends presentation of new runway at Nakhchivan International Airport
Iran, Serbia to expand ties by preferential trade agreement
Iran to inaugurate new national housing units
Iran's NIGTC announces tender for intelligent pipes
Iran to return to its full oil production capacity by early 2023, says JP Morgan
India, EU hold virtual summit to boost overall ties
Stand Firmly With India In This Challenging Time: European Commission Chief
JP Morgan expects global oil demand to surge over summer
President Ilham Aliyev arrives in Nakhchivan Autonomous Republic for visit
UK PM Johnson to announce next phase of COVID lockdown easing
Over 170 million Covid-19 vaccine doses administered so far, says Indian government
Covid-19: Abu Dhabi temple's medical supplies, oxygen reach India
Iran allocates funds for flood control projects
Iranian currency rates for May 10
Uzbekistan reveals COVID-19 data for May 10
Iran's main Stock Exchange sees decline
Azerbaijani president, first lady Mehriban Aliyeva visit tomb of national leader Heydar Aliyev
Ford recalls 661,000 Explorer SUVs in North America
Los Angeles-made film highlights Azerbaijan’s role in defeating Nazi Germany
Bahar Azadi gold coin price increase in Iran
Iran's NIDC to start exploration excavations in Ardabil Province
Iran to launch number of facilities in free trade, special economic zones
Investments in mining sector of Iran's Zanjan Province increase
Iran's Amir-Kabir Petrochemical Company sees increase in sales
Iran to restore several mines in Qom Province
Perpetuation of fascist ideology by Armenia - catastrophic for whole world - Israeli expert
Iran shares data on exports from Semnan Province
Iran discloses number of cars supplied with dual fuel free of charge
Likelihood of interest rate decrease in Azerbaijan seems very low – Unicapital
Foundation of apartments to be laid in Iran's Yazd Province
Eleven people killed in bombing of bus in Southern Afghanistan - officials
Fauci says U.S. COVID-19 death toll undercounted
Heydar Aliyev is a man who gave wings to Azerbaijan in most difficult conditions - Yuli Gusman
Vaccination of citizens over 18 starts in Azerbaijan
Poll shows 60% of Japanese want Games cancelled
Ministry discloses number of ships received by big port in southern Turkey in 1Q2021
Brazil reports 1,024 more deaths from COVID-19
UN Security Council to discuss East Jerusalem tensions on Monday
Gaza militants fire 2 rockets at southern Israel: military
Saudi Arabia to hold Hajj ritual under COVID-19 measures
Hamilton overtakes Verstappen to win F1 Spanish GP
UK records another 1,770 coronavirus cases, 2 deaths
EU has not ordered AstraZeneca vaccines beyond June - Commissioner
Russian FM to visit Azerbaijan
Emirates to fly medical aid to India for free
WHO records over 786,000 new daily cases of COVID-19 worldwide
Azerbaijan marks 98th birthday anniversary of National Leader Heydar Aliyev
Kazakhstan becomes main importer of Uzbek cars
Iran, India discuss expansion of trade relations
Turkey's COVID-19 cases maintain downward trend amid lockdown
Georgian NCDC Deputy Head hopes for better epidsituation in summer if cases do not surge in May
Enmity with Turks is catastrophe not only for Armenia, but for entire region - Pashinyan
Lukashenko, Putin agree to meet soon
President Ilham Aliyev makes Facebook post on 98th anniversary of national leader Heydar Aliyev (PHOTO)
Egypt to start producing Chinese Sinovac coronavirus vaccine in June: Health minister
South Sudan president dissolves parliament in line with peace deal
Israeli gov't approves aid plan for leading airlines
Belarus president signs decree on transition of powers in case of emergency
Progress achieved under Azerbaijan’s national leader Heydar Aliyev paved way for liberation of occupied lands in 2020 – Sobhani
Sunflower imports down in Georgia
Kyrgyz FM to visit China
Expert consultations continue in Vienna between Iran
New COVID-19 cases in Turkey lowest since March
Israeli gov't approves aid plan for leading airlines
Iran's Energy Exchange announces products to be on sale on May 10
Turkey discloses number of ships received by Zonguldak port in 1Q2021
National Gymnastics Arena in Baku has best conditions - Сoach of Egyptian team
Emotions after competition are positive - bronze medalists of World Cup in Baku, Azerbaijani team
Azerbaijan Army holds several events on occasion of 76th anniversary of Victory (PHOTO)
Uzbekistan increases export of textile products
Georgian President to visit North Macedonia on May 10
MasterCard intends to work with Turkmenistan to improve level of electronic payments
Gazelli Group congratulates Second World War veterans in its own unique way (PHOTO)
Azerbaijan shares data on number of vaccinated citizens for May 9
Azerbaijan reports 660 new COVID-19 cases, 1,539 recoveries
Azerbaijani ombudsman appeals to international organizations
Bulgarian team takes first place at World Cup in Baku in group exercises with three hoops and two pairs of clubs
Discussions underway to resume Tabriz-Baku flights - Iranian official
Awarding ceremony held within Rhythmic Gymnastics World Cup in Baku (PHOTO)
Iran reveals COVID-19 data for May 9
Turkey discloses volume of cargo transshipped through Aliaga port
Bulgarian gymnast grabs gold in exercise with ribbon at Rhythmic Gymnastics World Cup in Baku
76th anniversary of Victory in Great Patriotic War celebrated in Shusha (PHOTO)
Israeli gymnast grabs gold in exercise with clubs at Rhythmic Gymnastics World Cup in Baku
Leadership of Azerbaijani MoD paid tribute to memory of compatriots, who died in Great Patriotic War (PHOTO)
Baku holds award ceremony of winners and prize-winners of Rhythmic Gymnastics World Cup at National Gymnastics Arena (PHOTO)
Italian gymnast grabs gold in exercise with ball at Rhythmic Gymnastics World Cup in Baku
Israeli gymnast grabs gold in exercise with hoop at Rhythmic Gymnastics World Cup in Baku
Azerbaijani team grabs bronze in exercise with 5 balls at Rhythmic Gymnastics World Cup in Baku
Final day of Rhythmic Gymnastics World Cup starts in Baku - Azerbaijani graces competing for medals (PHOTO)
Industrial enterprises to be put into operation in Iran’s Tehran Province
Azerbaijani Economy Ministry announces winner of tender on assessment of feasibility study
Turkey discloses number of ships received by Bandirma port from Jan. through March 2021
Azerbaijani president, first lady pay tribute to Azerbaijanis who made unparalleled contribution to victory over fascism (PHOTO/VİDEO)
EU and India agree to resume trade talks at virtual summit
Azerbaijan strongly condemns attempts to distort truth about WW2, justify fascism - MFA
First Vice-President Mehriban Aliyeva makes Instagram post on Victory Day over fascism (PHOTO)
All news