China National Offshore Oil Corporation (Cnooc) plans to begin dry docking its liquefied natural gas (LNG) bunker barge, Hai Yang Shi You 301, from early July for a one-month period, according to a company source cited on May 28. The vessel has a capacity of 30,422 cubic metres of LNG, according to data from Platts, a division of S&P Global Commodity Insights.
To compensate for the temporary absence of this unit, Cnooc will redeploy its other barge, Hai Yang Shi You 302, which typically operates in east China. It will be sent to Shenzhen, in the south of the country, where Hai Yang Shi You 301 normally operates.
Temporary reduction of bunkering fleet
China currently has five LNG bunker barges in operation. Two of them are based in the south, while the remaining three operate in the east. The immobilisation of Hai Yang Shi You 301 is expected to cause a short-term strain on available supply, although industry sources report that current supply remains sufficient.
LNG bunkering demand in China is projected to grow this year as more dual-fuel vessels are launched. This trend is driving increased logistical requirements in a market still constrained by the limited number of specialised barges.
An expanding yet structured market
LNG bunker fuel suppliers in China include Shanghai International Port Group, Cnooc, China National Petroleum Corporation (PetroChina) and ENN Group. According to a local supplier, sales volumes for 2024 are estimated at around 358,000 metric tonnes.
On May 28, Platts assessed the price of delivered LNG bunker fuel in east China at $14.578 per million British thermal units (MMBtu). This benchmark is one of the key indicators for maritime operators and suppliers in the regional market.
