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China LNG Force Majeure Rejected as Virus Chaos Sparks Dispute

  • Shell, Total didn’t accept legal grounds for CNOOC declaration
  • Suppliers likely to seek compensation if cargoes are canceled

Two of Europe’s biggest energy companies rejected a Chinese force majeure on liquefied natural gas contracts in the latest twist to a drama that’s gripping global commodities markets.

Royal Dutch Shell Plc and Total SA didn’t accept the legal grounds for the move by China National Offshore Oil Corp. that would have freed it from its contractual obligations to take delivery of the shipments, according to people with knowledge of the matter.