Page 9 - AsianOil Week 33

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The cancellation marks the first time in more than 10 years that the CNPC subsidi- ary has backed away from plans to buy Ven- ezuelan crude. Bloomberg said it had viewed reports showing that no other buyer has stepped forward to purchase the stranded August-loading cargoes.
e Chinese companies’ move came as a sur- prise to PdVSA, Venezuela’s national oil company (NOC), according to Reuters’ sources. PdVSA hopes to work out a new deal with CNPC soon, but the Chinese parties are waiting for more guidance from the US Treasury Department before resum- ing shipments, the sources said.
As of press time, neither CNPC nor PdVSA, Venezuela’s national oil company (NOC), had commented on the matter.
PetroChina’s decision could represent a set- back for Venezuelan President Nicolas Maduro.
China’s government has been supportive of Maduro in the face of strong criticism from the US, which has backed opposition leader Juan Guaido’s claim that the president used fraud- ulent means to secure re-election last year. Washington has recognised Guaido, who cited Venezuela’s constitution when accepting the post of interim president earlier this year, as the legiti- mate head of state in Caracas.
China is one of the Venezuelan regime’s main sources of nancial support. Both Maduro and his predecessor Hugo Chavez have bene tted from Beijing’s decision to lend Caracas more than $50bn over the last decade in exchange for guaranteed deliveries of oil. ese deals have put CNPC and other Chinese companies in a posi- tion to use Venezuelan barrels – that is, blends of extra-heavy crude and lighter grades or water – as feedstock for their re neries.™
Shenzhen Gas to start up LNG terminal
PROJECTS & COMPANIES
SHENZHEN Gas has said it will launch oper- ations at its wholly owned lique ed natural gas (LNG) import terminal in southern China’s Shenzhen City this week.
e general manager of Shenzhen Gas unit Sino-Benny, Qiu Lihua, told Reuters on August 16 that the new 800,000 tonne per year (tpy) facility at the port of Yantian would receive a commissioning cargo of 65,000 cubic metres on August 19 from Italian major Eni.
“ is will be our own facility that will be con- nected to the existing municipal grid that takes in piped gas from [state-run] CNOOC and Pet- roChina,” Qiu said.
Sino-Benny will operate the terminal, which has an 80,000 cubic metre storage tank and was built next to the company’s existing LPG import facility.
While Asian spot LNG prices are at a near three-year low, Shenzhen Gas is aiming to secure a three-to- ve year term supply contract, with
Qiu saying: “As our berth is not of a standard size, we can’t really rely on random spot supplies, as the cargoes available may not t our berth.”
Qiu anticipates Shenzhen’s gas demand will maintain double-digit growth in the coming years, led by residential use and power genera- tion. e executive said the number of house- holds using piped natural gas would double by the end of 2020 from 2.1mn at present.
e outlook for the city’s economic growth is certainly bright, after state broadcaster CCTV revealed that the government intended the city to be a test centre for reforms in the legal, financial, medical and social sectors. Under the plan, which Beijing unveiled on August 20, Shenzhen is to become a leader in terms of innovation, public service and environmental protection by 2025. e plan also aims to turn Shenzhen into and a global “benchmark” for competitiveness, innovation and in uence by the middle of the century.™
Shenzhen City’s economic outlook is bright, thanks to the government’s planned reforms
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