LNG

Cheap LNG imports force Shandong plants offline

Cheap imports are dominating the LNG market in the Chinese province of Shandong and forcing local plants to stop production Cheap imports are dominating the LNG market in the Chinese province of Shandong and forcing local plants to stop production.
By Tang Tian 30 August 2017 0 27375
The Qingdao LNG terminal in Shandong. (Sinopec)

Cargoes imported into China’s state-owned terminals are piling the pressure on domestic LNG plants in the eastern coastal province of Shandong, forcing all but one of its liquefaction facilities to shut down.

Shandong’s LNG consumption is currently averaging 190 tanker trucks per day, 161 of which are from Sinopec’s terminal in Qingdao, a major port city in the province, and China National Offshore Oil Corp.’s (CNOOC’s) facility in Tianjin, according to data from consultants SCI International.

Sixteen tankers come from Inner Mongolia and Hebei province, with the...