This virus is an opportunity for China to shake a pretty unhinged portfolio. China had over contracted LNG in the past. They did so because they had drunken their own Kool-Aid and believed the market would grow by a miracle. They learned that gas market growth takes lots of on-the-ground market development and that’s a pain. It takes time too and a lot of infrastructures to be built. Along comes a virus and while this is horrible news in many ways, China seems to use the good effects. It’s a perfect excuse to refuse LNG cargos that they don’t want. That is if sellers are willing to take it on the chin. Memories are long in this business.
The Chinese government s decision to offer force majeure certificates to domestic companies if they are unable to meet their international contractual obligations due to the coronavirus outbreak has c