ICIS: GDF SUEZ in Long-term China Strategy; US LNG Exports Upcoming

Global LNG supplier GDF SUEZ believes the developing competition among private Chinese companies for LNG imports is a trend that cannot be stopped. It also has a positive view on the potential expansion of the US Cameron export plant in which it has a stake, Philip Olivier, President of GDF SUEZ LNG told ICIS in an interview earlier this month.

“The monopoly of the three main Chinese importers will change and the utilities will be tomorrow’s importers. Some private companies have access to import terminals already and that is a trend that cannot be stopped – the government has a reason to open the market and let competition play,” Olivier said on the sidelines of the CWC World LNG Summit in Paris.

GDF SUEZ recently signed a broad deal with Chinese energy investor and infrastructure company Shenergy that includes areas of LNG, pipe gas and gas-fired power generation.

“It will take some time as the regulation needs to be in place and the companies need import permits but we will make room for mid- and long-term deals as the potential is big,” Olivier said on the future of LNG deliveries into the country.

The expected increase in LNG imports into China is a central industry talking point but with divergent views on future demand scenarios.

Several private Chinese companies have this year imported or at least discussed LNG imports either by chartering their own vessel or by taking a capacity slot at one of the major import terminals. Such companies include Jovo Group, ENN Energy and CERCG. MORE