Kategori : NATURAL GAS ENERGY NEWS, ENERGY AGENDA NEWS - Tarih : 18 February 2020

Shares of U.S. liquefied natural gas companies tumbled on Thursday as China’s biggest importer of the fuel suspended some purchases amid weaker demand and a global glut that has driven prices to record lows.

China is the world’s second-largest LNG importer but its spot purchases have nearly ground to a halt as the economic effects of business closings due to the spread of the coronavirus, as well as lower heating demand from a relatively warm winter.

Shares of Cheniere Energy Inc, the largest U.S. exporter of LNG, dropped to their lowest in over a year before finishing down 3.4% at $57.65, while Tellurian Inc fell 7.4% to $7.07, and NextDecade Corp lost 5.6% at $4.70.

U.S. gas producers are counting on LNG exports to absorb record production from the shale boom. Those exports jumped 68% to a record 5.0 billion cubic feet per day in 2019 after soaring 53% in 2018.

Reuters reported on Thursday that China National Offshore Oil Corp (CNOOC) had declared force majeure, which allows companies to suspend contracts after unexpected events like natural disasters.