Reuters: Chinese Independents Get Foothold in LNG Trade as Restrictions Lifted

China's independent buyers of liquefied natural gas (LNG) are taking their first cargoes of the fuel as Beijing permits third-party use of idle capacity at import terminals and approves the new players' long-term plans to build their own facilities.

Privately run city gas distributor ENN Group and onshore LNG investor Guanghui Energy Co Ltd were among the first to start importing spot cargoes, renting space at PetroChina's underutilised receiving terminals at Rudong and Dalian and each bringing in at least one cargo since late 2014, according to company officials.

Other new importers include trader JOVO Group and independent oil and gas company Pacific Oil and Gas as China works to meet clean energy targets calling for natural gas' share in its energy mix to double.

Beijing is freeing up the nation's LNG trade as part of broad reforms that allow private companies to invest in oil and gas exploration as well as pipelines and tank farms, and to engage in importing and exporting. The aim is to help secure supplies while boosting competition and efficiency in an energy sector long dominated by state firms. MORE