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    Lessons learned: Crew should be aware of the most efficient fire fighting methods

    ITF recovers multi-million sum of owed wages

    ITF recovers multi-million sum of owed wages

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    Gard Club: Ballast water management regulations are tightening

    The first LNG bunkering facility to be available in US Gulf from 2026

    The first LNG bunkering facility to be available in US Gulf from 2026

    73% of stakeholders view net zero as a strategic priority

    73% of stakeholders view net zero as a strategic priority

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    Jotun Hellas pioneers vessel maintenance and safety with novel Aerial Drone Inspection Service

    Jotun Hellas pioneers vessel maintenance and safety with novel Aerial Drone Inspection Service

    IUMI explores the implications of digitalization on marine insurance

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    Valenciaport: ETS poses many risks for non-EU ports

    Valenciaport: ETS poses many risks for non-EU ports

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    World Maritime Day 2023: Celebrating 50 years of MARPOL

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    Gard Club: Industry needs to mature and learn from incidents and human errors

    Gard Club: Industry needs to mature and learn from incidents and human errors

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    Tokyo MOU: Fire Safety is one of the most frequently detainable deficiencies

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    Seafarer Stories: Capt. Cristian Bacanu, Master

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SAFETY4SEA

Energy companies to reject Chinas’ LNG force majeure

by The Editorial Team
February 10, 2020
in Fuels
LNG force majeure

Credit: CNOOC LTD

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Following the coronavirus situation, two of the biggest European energy companies denied a Chinese force majeure upon the LNG deals. Specifically, Royal Dutch Shell Plc and Total SA did not accept the legal grounds of China National Offshore Oil Corp. (CNOOC) decision.

In fact, several days ago CNOOC has reportedly announced to cancel the scheduled LNG deliveries, from at least three suppliers, since the coronavirus spread created several constrains.

According to Bloomberg, the Royal Dutch Shell Plc and Total SA rejected this decision, while will probably seek repayment from the Chinese company.

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With CNOOC likely to cancel the operations and struggling to take delivery of LNG, Total SA confirmed that received one force majeure notification, which did not accepted, following legal analysis.

RelatedNews

The first LNG bunkering facility to be available in US Gulf from 2026

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Nalemy, Philippe Sauquet, head of Total’s gas, renewables and power segment said to Bloomberg:“Of course we have to be careful, if there is a real quarantine in all unloading ports in China, we have a real case for force majeure. But for the time being, this is not the case. For me it is ordinary negotiation.”

Overall, apart from the LNG market, BIMCO recently announced that the coronavirus has also impacted the shipping markets and has negatively affected the freight rates.

 

Tags: ChinaCOVID-19LNGLNG marketShellTotal
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