Sinopec, (also known as China Petroleum & Chemical Co), said its Guangxi branch had launched an emergency plan to source LNG from other provinces, without elaborating on the reason for the tight supply situation.

Liquefied natural gas (LNG) supply in the southern Chinese region of Guangxi and nearby regions has tightened, Sinopec said, prompting the state-owned firm to source supply from elsewhere as winter approaches.

The move follows a fire that broke out at the Beihai LNG terminal on Monday, which killed six people and forced a temporary closure of Tieshangang port where the terminal (which is now owned and managed by newly established pipeline company PipeChina) is located.

Sinopec said there has been no supply disruption in any of its 22 LNG filling stations and 10 natural gas stations in Guangxi.

The impact of the terminal’s fire on the international spot market was not immediately clear but one Singapore-based trader said the company is expected to divert some of its cargoes bound for the terminal.

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9th November 2020