-- China, the world's second-largest energy consuming nation, bought four liquefied natural gas cargoes at record prices on the spot market last month to meet increased demand for the fuel on its southeastern coast.

The country paid $13.9 per million British thermal units, the highest to date, for a cargo from Equatorial Guinea, according to calculations from Customs figures released in Beijing today. That compares with the $3.15 per million Btu China pays for Australian LNG supplied under a 25-year contract.

Guangdong Dapeng LNG Co., operator of one of the nation's two receiving terminals for the fuel, plans to double purchases of cargoes for immediate delivery this year to meet demand. Oil prices have gained more than fourfold since China signed its agreement with Australia's North West Shelf LNG venture in August 2002.

``LNG prices have risen along with crude oil, but as long as they remain at a level users can afford, spot cargo imports will be sustainable,'' Kevin Zhuang, a gas analyst with Guangdong Oil & Gas Association, said by telephone today. Guangdong will need increasing amounts of LNG to supplement Australian supplies as more import terminals for the fuel open in the southern province, he said.

Guangdong Dapeng, a venture between China National Offshore Oil Corp. and BP Plc, supplies power producers and residents in the nation's manufacturing hub. China National, the nation's largest offshore oil explorer, plans a further two LNG receiving terminals in the province.

Egypt, Nigeria

China imported 122,467 metric tons of LNG in two cargoes from Egypt for $87.8 million or $13.65 per million Btu and 61,069 tons from Nigeria for $42.3 million or $13.33 per million Btu, according to today's customs figures.

Guangdong Dapeng bought two individual cargoes in May, a Chinese official said in April. The other two cargoes were recorded last month after they failed to complete registration procedures in April.

Guangdong Dapeng received its first spot cargo this year from Nigeria in late April, Christian Steimler, manager of the LNG Department at BW Gas, a unit of BW Shipping Group, said May 23. China National's second terminal in southeastern China's Fujian province received its first spot cargo from Egypt on April 26, before it starts handling contractual shipments from Indonesia, the Beijing-based company said April 30.

China bought seven spot LNG cargoes last year and resumed imports in April after halting purchases in November because of high prices.

A spot LNG cargo typically weighs between 55,000 and 60,000 tons. LNG is natural gas chilled to liquid form, reducing it to one-six-hundredth of its original volume at minus 161 degrees Celsius (minus 258 degrees Fahrenheit) for transportation by ships to destinations not connected by pipeline.

Oil, which touched a record $139.89 a barrel in New York on June 16, cost less than $30 a barrel at the end of August 2002.