The LNG carrier Seri Camar -- which was carrying a cargo from the Petronas' Bintulu LNG complex -- arrived at the Dapeng terminal on June 29, according to cFlow, Platts trade flow software.
After unloading at Dapeng, the ship discharged the remaining super-chilled fuel at the nearby Diefu terminal and left the port empty Tuesday, the source added.
The Dapeng terminal was currently reported to be experiencing limited tank space amid excessive inventories, while other southern terminals are also generally close to hitting tank tops, an end-user said.
Persistent rainy season and tepid downstream demand were cited as causes pressuring the terminal storage, market sources said.
The full size LNG cargo was procured from Malaysia's Petronas earlier in March via an expression of interest seeking two cargoes for delivery into the Dapeng LNG terminal over H2 May and H1 July, respectively, S&P Global Platts reported earlier.
The cargo was initially slated for early-July delivery at a price of around $5.25/MMBtu. The shipment was later pushed forward for June 29 delivery, with a price adjustment to $5.05/MMBtu, Platts reported earlier.
Meanwhile, the LNG prices have come under pressure with average domestic trucked LNG prices recorded at Yuan 3,413/mt Thursday, the lowest level seen since early-May 2018, according to Shanghai Petroleum and Natural Gas Exchange, or SHPGX. The SHPGX monitors trucked LNG transactions from 50 LNG terminals and factories.
In the meantime, Typhoon Mun was reported to have hit South China's Hainan province Wednesday, resulting in heavy rains and landfall along the coastal regions, according to the China Meteorological Administration.
A soft Chinese downstream market coupled with mild summer weather are expected to further dampen sentiment in the LNG spot market. The Platts JKM for August cargoes was assessed at $4.31/MMBtu Thursday, plunging 44 cents/MMBtu on-week as a global supply overhang continued to weigh.
In China, coal-to-gas switching policy directives as a mean to curb air pollution had led to robust LNG import growth since 2017. However, market participants noted a significant decline in growth rates since start of the year.
Total Chinese LNG imports for first half of 2019 stood at 27.6 million mt, up 18.6% year-on-year, against a near 50% spike on-year for the same period in 2018 at 23.2 million mt, according to S&P Global Platts Analytics data.
The country registered a 7.2% increase in June LNG imports year-on-year, the slowest growth rate in monthly imports across first half of the year, Platts Analytics data showed.
Guangdong Energy signed a terminal usage agreement with CNOOC at Dapeng at the end of 2018, and has been active in the spot market for procurement of several spot cargoes since March. Both the Dapeng LNG terminal and Diefu LNG terminal are operated by CNOOC.
