China’s CNOOC issues second spot LNG tender

China’s state-owned oil and gas major CNOOC has issued a tender offering one cargo from its equity offtake at the Queensland Curtis LNG (QCLNG) project in Australia, traders in Asia said.

The tender was issued on 4 November and will close on 10 November, with the validity period for bids ending on 13 November. CNOOC is requesting bids on a DES (delivered ex-ship) fixed-price basis. The cargo is tentatively available for loading on 25-26 December, according to the tender document, indicating that the dates could be changed later.

CNOOC is likely to be offering the cargo because of high inventory levels and weak domestic demand, market sources said. Some of its receiving facilities are close to full capacity, while its floating terminal in Tianjin has been inactive since 8 August because of tighter import regulations following an explosion at the port.

The Chinese major is also confident of having sufficient supply to meet any incremental winter demand in January, market sources said.

This would be the second tender from the new seller this year, with the first issued in early September to a select pool of participants that have master sales agreements with CNOOC.

The first tender offered two cargoes – one for October loading and the other for November delivery. CNOOC awarded the cargoes to UK-based portfolio companies BG Group and BP at a price level equivalent to $7.10-7.20/MMBtu DES, market sources said in mid-September.

CNOOC decided to sell the two QCLNG cargoes as it was unable to take in more LNG imports over the two months due to domestic oversupply.

The Chinese major has a 50% equity stake in the 4.25mtpa Train 1 of QCLNG. xieli.lee@icis.com