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Qatargas delivers first liquefied natural gas to China (PTR, XOM, COP, CHIE)

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Qatargas has started delivering its first cargo of Q-Max liquefied natural gas (LNG) to China in order to feed that nation's increased hunger for energy in all forms.

The delivery arrived at Petrochina's ( PTR , quote ) new LNG receiving terminal in Rudong via the Bu Samra, one of the world's largest tankers. The Bu Samra can deliver 266,000 cubic meters of liquified natural gas, nearly twice the capacity of a conventional tanker.

Qatargas CEO Kahild Bin Khalifa Al Thani called the delivery "a significant milestone meeting the growing demand for energy in the People's Republic of China," and predicted a strong long-term relationship between Qatargas and Petrochina.

Qatargas expects to ship 3 million tonnes of LNG per year to Petrochina for up to 25 years. This is 7% of the company's annual production capacity of 42 million tonnes.

China needs all the gas it can get, and plans to make natural gas account for 10% of overall energy consumption by 2020.

Much of this will flow through the pipes of Petrochina subsidiary Kunlun Energy. Kunlun is traded in Hong Kong, and is part of the China Energy ETF portfolio.

Qatargas is the world's largest LNG company. It is a joint venture between Qatar Petroleum, ExxonMobil ( XOM , quote ), ConocoPhilips ( COP , quote ), and other oil companies.

This is a good opportunity to mention the China Energy Fund ( CHIE , quote ), an ETF that invests in the country's oil, gas, coal and other energy companies.

"Alternative" technologies only account for 11% of the fund's holdings, so CHIE is biased toward oil: CNOOC ( CEO , quote ) and Sinopec ( SNP , quote ) along with PTR and stocks that are difficult to trade in the United States.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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