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    Cnooc Declares Force Majeure on LNG Contracts: Press


Beijing is yet to publish statistics showing the impact the coronavirus had on gas demand in January.

by: Joseph Murphy

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Natural Gas & LNG News, Asia/Oceania, Corporate, Import/Export, Contracts and tenders, News By Country, China

Cnooc Declares Force Majeure on LNG Contracts: Press

China’s biggest LNG buyer Cnooc has declared a force majeure on some of its contracts, because the coronavirus has constrained its ability to import the fuel, Bloomberg reported on February 6.

Force majeure notices were received by Shell and Total, sources told the news agency. The clause allows Cnooc to opt out of obligations without legal recourse by citing reasons beyond its control.

China has sought to shut down cities and restrict travel to prevent the outbreak from spreading, and this is widely believed to have had a significant impact on the country’s gas demand. The country's National Development and Reform Commission is yet to publish consumption statistics for January.

China is the world’s biggest gas importer, and the global LNG market has been struggling with oversupply for much of the last year, as a result of new production capacity starting up and lacklustre demand in Asia.

Sources told the Financial Times on February 4 that all three of China's state energy giants – Cnooc, CNPC and Sinopec  were considering invoking forces majeures on import contracts.