LNG Storage Off U.A.E. May Equal Six Months of China's Average Purchases - Bloomberg

Liquefied natural gas tankers anchored off Fujairah in the United Arab Emirates may be storing the equivalent of about six months of China’s average purchases.

There are about 26 ships idled off Fujairah as of Aug. 6 with a carrying capacity of 5.6 million metric tons, said Pan EurAsian Enterprises Inc. in an e-mail yesterday, citing data from Odysseus tracking service. There may be about 2.6 million tons of the fuel in floating storage based on posted draft data, the U.S. energy consultant said.

China imported 7.63 billion cubic meters, or 5.6 million tons, last year, according to BP Plc’s Statistical Review of World Energy 2010. An oversupply of gas and weak demand have sent spot charter rates to the cheapest in five years, prompting producers and traders to take advantage of the low charges to store the fuel, according to Drewry Shipping Consultants Ltd. in June.