PetroChina aims to reduce risks by increasing North American LNG volume, according to an executive

PetroChina International, trading arm of Chinese oil giant, is interested in North American supplies of liquefied gas. The company wants to reduce its trading risks by negotiating flexible supply agreements, according to a company official on Tuesday.

If I look at the portfolio we have today, I'd say that there is a slight over-weighting on duration. Zhang Yaoyu is the assistant chief executive of LNG and global head. She believes that we have signed too many SPAs, which are sales and purchase agreements, with very long terms and take-or pay clauses.

PetroChina International is actively trying to "derisk" LNG deals in Asia and China.

We have worked hard to improve the portfolio's resilience.

Zhang said the company would also be interested in taking some North American positions.

Buyers and traders of LNG may look for contracts with no destination restrictions to resell cargos at times when demand is low. Most supply deals with U.S. suppliers do not include destination restrictions. (Reporting and editing by Louise Heavens, Sudarshan Varadhan)

(source: Reuters)