• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 5 hours Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 6 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 44 mins A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 1 hour Used Thin Film Solar Panels at 15 Cents per Watt
  • 6 hours China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 12 hours US Shale Economic Impact: GDP gain realized in shale boom’s first 10 years
  • 40 mins IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 19 hours It's Not the Job of the Government to Dictate Where Businesses Should Go
  • 12 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 19 hours Offshore subsea sub 50$/bbl : Rystad Energy: High stakes in store for subsea markets if oil falls to $50/bbl
  • 15 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 16 hours Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 11 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 10 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
U.S. Sanctions To Halve Venezuela’s Oil Rig Count

U.S. Sanctions To Halve Venezuela’s Oil Rig Count

A U.S. sanction waiver expiry…

Brazil Government Looks To Fully Privatize Petrobras By 2022

Brazil Government Looks To Fully Privatize Petrobras By 2022

Brazil’s government wants to privatize…

China Turns Gas Fields Into Storage

Gas storage

China has begun turning depleted gas fields into gas storage facilities to avoid a repeat of this winter’s supply crunch when the cold hit and several million households were left without heating.

The crunch was a result of China’s aggressive shift to gas from coal, underestimating its storage and import capacity. As a result, it is now playing it safe, pumping natural gas from Turkmenistan and Myanmar into underground caverns in former gas fields.

In this case, the depletion of its fields is a favorable circumstance: underground gas storage facilities are not an abundant resource anywhere. Some of the fields to be used as storage facilities are even still producing, Reuters’ Chen Aizhu notes.

Plans are to have all 25 underground gas storage sites before winter, and to increase LNG imports: according to Wood Mac, China’s LNG imports are set for a 25-percent increase this year, to 48-49 million tons.

The increase in imports is vital, as the available storage capacity is only enough to cover 5 percent of the country’s gas consumption. That’s twice as low as the international average, which stands at 10-12 percent, but Beijing has launched a storage-building strategy that will see the current capacity doubled over the next five to eight years.

Related: Oil Prices Likely To Soar On Geopolitical Risk

China is also boosting its LNG import capacity. Earlier this month, state-owned Sinopec Group said that it aims to more than double its receiving capacity for LNG over the next six years. The company will add new LNG receiving facilities along China’s east coast for a total of 26 million tonnes annually by 2023, up from the current 9 million tonnes. At the moment, China has 17 LNG import receiving terminals.

In the past 10 years China’s natural gas consumption has risen fourfold to more than 25 billion cu ft daily. This fast growth is only set to accelerate as the authorities strive to reduce the immense pollution levels in the country.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play