• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 min Is Europe heading for winter of discontent with extensive gas shortages?
  • 19 hours Sand Powered Batteries for Heating Industries and Homes
  • 5 days Once seen as fleeting, a new solar tech proves its lasting power
  • 6 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 11 hours "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 11 hours "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 2 days Bloomberg - "Hedge Funds Hit by ‘Onerous’ ESG Rule Turn to Lawyers for Help"
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

LNG Remains In Tight Supply In This Key Market

PetroChina has begun cutting natural gas deliveries to certain industrial clients signaling still tight supply of the fuel that caused rather severe shortages in northern China in December.

Reuters quotes four unnamed sources as saying the move aimed to reduce the risk of new shortages this winter and also included raising gas prices for some large buyers, including gas distributors and liquefaction plant operators.

The news comes after the supply order deadline for state gas suppliers with their larger clients, which, as per the state planning commissions’ requirement, was the end of April. The deadline was set in a bid to gain clarity into demand and supply patterns early on in the year.

In January-April, China’s gas consumption increased by 14 percent to 71.1 million tons, which has driven LNG prices even higher on the spot market after a surge in December prompted by an urgent boost in imports to fight the shortage created by the rush to reduce the country’s reliance on coal power generation capacity.

Last year, gas imports jumped by 27 percent to 68.57 million tons, including pipeline and LNG shipments, with LNG prices hitting a three-month high on the spot market.

This year, China’s largest refiner, Sinopec, signaled efforts were being made to avoid a repeat of the December shortages. In April, the company said it had plans to boost its LNG import capacity to 26 million tons annually over the next six years from the current 9 million tons. State energy companies have also begun turning depleted gas fields into gas storage facilities to avoid a repeat of this winter’s supply crunch.

This capacity build takes time, however, so it seems PetroChina is trying to avoid a supply crunch by limiting supply before the peak in demand. According to one source from a gas liquefaction plant in Inner Mongolia, this is the first time PetroChina has cut supplies before the summer, and this will deal a blow to the plant’s profit margins.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News