China National Petroleum Corp.invoked force majeure on all natural gas imports, according to Caixin sources, the second Chinese buyer to refuse shipments in a sign that global commodity flows may face sustained impact from the coronavirus epidemic, reported Caixin.
CNPC, the parent of PetroChina Co., took the extreme step after initially working with sellers to reschedule shipments and plans to cancel contracted deliveries of the fuel both as liquefied natural gas and via pipelines in the short term. At least one LNG supplier was notified.
The nation’s buyers have struggled with the impact of the virus, which has cut demand for fuel and maxed out gas storage space. Companies declare force majeure when they’re unable to meet contractual obligations for reasons beyond their control.
China’s biggest suppliers of LNG include Australia, Qatar and Malaysia, while Russia and Central Asian nations — Turkmenistan, Kazakhstan and Uzbekistan — as well as Myanmar supply via pipeline.