China’s Shanghai
Petroleum and Gas Exchange (SHPGX) plans to unite small LNG buyers to jointly
purchase LNG cargoes in the international market, the exchange said in an announcement
posted on its official website on May 7. The move will better serve domestic small
and medium-sized LNG buyers, as well as provide more options for different
market entities, and give full play to the platform’s role.
Qualification: Qualified
buyers who have requirements for small parcels can join the joint buying
options. All needs for small LNG parcels will be pooled together, which will
then be purchased from the international market by agents.
Schedule: Agent and buyers
interested in participating in the joint procurement can register with SHPGX from
May 7 to May 20, while transactions for the joint order are not fixed.
Scale: The total
joint procurement volume for a single order does not exceed 65,000 mt, and the
purchase volume of a single buyer can be no less than 1,000 mt, according to
SHPGX.
Pricing: The
transaction price of the joint procurement order will be linked to
international LNG spot prices in the month when the cargo arrives, or else set
at a fixed level, which will finally be settled on a yuan basis.
Delivery: The
jointly purchased LNG cargo will be delivered to coastal terminals.