Terminal operations at Beihai LNG terminal in the Guangxi province are likely to be suspended for at least a month after a fire that occurred on Nov. 2, killing six and injuring three, according to sources with knowledge of the matter.
Despite the estimated length of suspension at the terminal, which has a nominal capacity of 2.9 million mt/year and a storage capacity of 480,000 cu m, sources agree that market impact from the news is likely to be limited in nature, given the availability of underutilized terminals located in the South that would be able to accept the diversions of cargoes if necessary.
“Sinopec will focus on procuring supplies from the domestic market—likely the other terminals in southern China—for its Guangxi market instead of buying more spot LNG,” said a source, further adding that all operations including LNG trucking services have been halted since the fire.
Energy Navigator, a 147,000 cu m LNG carrier vessel was originally slated to arrive at the Beihai terminal, but will be diverted to Japan in view of the current terminal outage, according to the source with knowledge on the matter.
Previously, Al Mayeda, which was expected to be arriving at the terminal on Nov. 5 had changed its destination to Dalian terminal as of Nov. 3, expected to arrive on Nov. 9, according to Platts ship tracking software c-Flow. The vessel had loaded a cargo from Ras Laffan terminal on Oct. 24.
The receiving terminal, which had recently been transferred from China’s national oil company Sinopec to PipeChina, typically receives one cargo a week, according to ship tracking data on c-Flow.