On October 24, 2018, Wang Yuetao, general manager of ZhenHua Oil, headed a team to Yuedong LNG Receiving Station to witness the arrival and unloading of the first LNG carrier Gaslog Singapore, together with leaders and experts of the Market Supervision Department and South China Regulatory Office of National Energy Administration, CNOOC Gas & Power Group, Shanghai Petroleum and Natural Gas Exchange (SHPGX), Longkou Senton Energy (Senton), Panergy and China University of Petroleum, among others. They also attended the seminar on building of imported LNG import window slot products and fair opening of receiving stations to third parties.
The LNG import window slot product is the historical first one launched by CNOOC Power & Gas Group and SHPGX. On September 20, ZhenHua Oil and Senton succeeded in the bidding after 20 rounds of fierce competition. This successful handover of imported LNG cargo means that the first phase pilot of import LNG window slot product has been successfully delivered, and the LNG receiving station is opened to third parties through competitive market operation.
Wang Yuetao said that it was not easy for ZhenHua Oil to obtain the rights for first use of the LNG window in China and to successfully complete the unloading of the first shipment of LNG. For a long time, LNG international trading was separated from the domestic trading. The international market price is too high to reflect the supply and demand relationship in the domestic market. Such fact not only hurts the growing natural gas market in China, but also affects the healthy growth of global LNG demand. CNOOC LNG receiving terminal is opened fairly to third parties, which is convenient for more market players to join the sector, and makes the international and domestic market linked spot trading possible. The price discovery function of the spot trade will enable LNG international suppliers to formulate price strategies more rationally and both the supply and demand sides can achieve a win-win situation. At the same time, the opening of the LNG receiving station has greatly improved the use efficiency and turnover of the receiving station.
In the next phase, ZhenHua Oil will continue to promote the corporate spirit of “to be people-oriented, to be collaborative and innovative, to be a pioneer and to be proactive”. It will grasp the opportunity of opening domestic LNG window slotstrading, vigorously give play to its advantages in the upstream source procurement, actively explore the domestic terminal market, innovate the business model and build a complete industrial chain of the natural gas.