China Pays Nigeria, Algeria, Egypt Record Prices for July LNG

By Wang Ying and Xiao Yu

Aug. 22 (Bloomberg) -- China paid record prices for three liquefied natural gas spot cargoes last month as demand for the fuel increased in the world's fastest-growing major economy.

The second-largest energy consuming nation paid Nigeria $15.46 per million British thermal units, Egypt $15.37 and Algeria $15.39 for each individual LNG cargo, Bloomberg calculations based on customs figures released in Beijing today show. That exceeds the $14.35 per million Btu China paid Nigeria for LNG in June.

Guangdong Dapeng LNG Corp., which operates one of China's two liquefied natural gas terminals, is buying spot cargoes to supplement deliveries from Australia supplied under a 25-year agreement. The July spot LNG prices China paid are almost five times the $3.15 per million Btu it cost to import Australian LNG.

China paid Nigeria $49.5 million for 61,039 metric tons of LNG for immediate delivery, Egypt $48 million for 59,544 tons, Algeria $52.2 million for 64,679 tons and Australia $30.5 million for 189,430 tons, today's customs figures show.

A spot LNG cargo typically weighs between 55,000 and 60,000 tons. LNG is natural gas chilled to liquid form, reducing it to one-six-hundredth of its original volume at minus 161 degrees Celsius (minus 258 degrees Fahrenheit) for transportation by ships to destinations not connected by pipeline.

Only the U.S. uses more energy than China. A British thermal unit is equivalent to the amount of heat generated by a lighted match.

To contact the reporter on this story: Wang Ying in Beijing at ywang30@bloomberg.net; Xiao Yu in Beijing at yxiao@bloomberg.net