CNOOC sells stashed LNG cargo as demand eases

The diminishing natural gas demand over the course of the current winter has forced China National Offshore Oil Corp (CNOOC) to sell a cargo of liquefied natural gas on standby offshore South Korea. 

Citing Refinitiv Eikon data as well as sources close to the matter, Reuters reports the company has sold a cargo onboard the 150,000-cbm Neo Energy, that was anchored off South Korea.

The vessel was reportedly directed to Tokyo Japan, however, the name of the buyer was not revealed.

The move is the opposite of what China experienced during the 2017/2018 winter season when the demand spiked as the government ordered residential and heating users to switch from coal to natural gas.

Neo is part of CNOOC’s move to secure supply during the winter months by holding a couple of fully laden LNG carriers on standby for delivery to either Tianjin or Ningbo terminals.

Higher-than-usual weather curbed demand during the winter period and the demand for LNG from industrial users remained flat.

LNG World News Staff