Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC

PetroChina's Kunlun Energy plans to repair Rudong LNG site

China’s Kunlun Energy Co. Ltd , a unit of PetroChina Co, plans to finish repairs at its Rudong liquefied natural gas (LNG) import terminal by mid-November after an accident last month, said two company sources on Wednesday.

Kunlun, which operates PetroChina’s LNG receiving terminals, has cut intake capacity at Rudong, among the three largest import terminals in China, since Sept. 21, when a tanker collided into a bridge that connects the island where the terminal is located to the mainland during a typhoon, said one of the sources.

The cuts to Rudong’s capacity are occurring just before LNG importers typically increase their intake ahead of the winter demand peak to meet the country’s heating needs.

The terminal sits on a man-made island off Rudong county in coastal Jiangsu province and can bring in 6.5 million tonnes per year of LNG.

The bridge, which carries a gas pipeline linking an onshore re-gasification facility, was partially damaged, said the source.

“Repairs are under way and should be completed before the start of the winter heating season,” said the second company source.

The company sources declined to be named as they were not authorised to speak to media.

PetroChina did not immediately respond to a request for comment.

Despite the reduced import operations, the company sources said the terminal was continuing to ship fuel to customers using LNG trailers.

PetroChina’s trading unit Chinaoil is diverting some of the LNG meant for the Rudong terminal to its two other receiving terminals in Tangshan and Dalian, said the first company source.

Chinaoil is also offering spot cargoes for delivery in October and November, said two LNG traders, though this could not immediately be confirmed.

Shiptracking data on Refinitiv Eikon shows the last cargo to Rudong was delivered on Sept. 28 from the Yamal LNG plant in Russia.

The terminal received about 650,000 tonnes of LNG in August, which was about nearly 13% of China’s overall LNG imports.

LNG volumes into Rudong fell by nearly half to 360,000 tonnes in September, according to the shiptracking data.

In 2018, Rudong received a total of 85 LNG tankers totalling more than 6.5 million tonnes and supplied 9.2 billion cubic metres to the domestic market in gas form. (Reporting by Chen Aizhu and Jessica Jaganathan; editing by Christian Schmollinger)

Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo


Editorial Comment: The Future of FLNG: Less is More?
-Adrienne Blume
Global LNG export capacity is expected to increase by 45% between 2017 and 2022, to more than 400 metric MMtpy, with 90% of the new capacity coming from sanctioned projects in the U.S. and Australia. By 2050, this capacity is anticipated to exceed 700 MMtpy. Regasification capacity is anticipated to increase even more sharply.
Executive Viewpoint: Back to production: Where we’re going, we don’t need pipelines
-Mark Casaday
What if a cost-effective way existed to extract and distribute natural gas, regardless of proximity to pipeline, and bring those assets back to production? What if the industry went in a direction that did not need pipelines? For those looking to monetize unproductive natural gas assets or bring unproductive wells back to production, it would be revolutionary.
Regional Focus:Australia to boost LNG exports despite domestic gas shortage
-Eugene Gerden
Australia is planning further increases in LNG production and exports over the next decade, despite quickly depleting reserves and a looming supply shortage in the domestic market.

GasPro 2.0: A Webcast Symposium

Register Now

Following on the heels of the highly successful GasPro 2.0 Webcast Symposium in October 2018, the second GasPro Webcast Symposium 2.0 will take place on October 24, 2019.

The 2019 web event will gather experts in the fields of LNG, gas processing, and gas transport/distribution to share their operations expertise, engineering and design solutions, and technology advances and trends with our audience.

Attendees will learn about technology and operational solutions and deployments in a number of areas: plant design and expansion, construction, NGL production, optimization, sulfur removal, marine operations and separation technology.

October 24, 2019 08:30 AM CDT

Register Now


Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2020 Gulf Publishing Holdings LLC.