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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)


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