LNG News: CNPC Issues Force Majeure After Coronavirus Outbreak - Bloomberg:
China National Petroleum Corp. has issued a force majeure on all prompt natural gas imports, according to people with knowledge of the situation, the second Chinese buyer to refuse shipments in a sign that global commodity flows may face a sustained impact from the coronavirus fight.
CNPC, the parent of PetroChina Co., is taking the extreme step after initially working with sellers to reschedule shipments, and plans to cancel contracted deliveries of the fuel both as liquefied natural gas and via pipelines in the short-term, said the people, who asked not to be identified as the information isn’t public. At least one LNG supplier had been notified, the people said.
CNPC declined to comment.
The nation’s buyers have struggled with the impact of the virus, which has cut demand for the fuel and maxed out storage space. Firms declare force majeure when they’re unable to meet contractual obligations for reason beyond their control.
China’s biggest suppliers of LNG include Australia, Qatar and Malaysia, while Russia and Central Asian nations -- Turkmenistan, Kazakhstan and Uzbekistan -- as well as Myanmar supply via pipeline.
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