• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Does Toyota Know Something That We Don’t?
  • 6 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 days America should go after China but it should be done in a wise way.
  • 6 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 5 days China is using Chinese Names of Cities on their Border with Russia.
  • 6 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 5 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 6 days Putin and Xi Bet on the Global South
  • 6 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 7 days United States LNG Exports Reach Third Place
  • 7 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 11 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine
Warm Winter Drags U.S. Natural Gas Prices to Three-Decade Low

Warm Winter Drags U.S. Natural Gas Prices to Three-Decade Low

Warmer-than-average winter temperatures in the…

Is China Facing A Gas Shortage?

The major Chinese oil and gas companies are boosting natural gas supply across the country ahead of the winter heating season, as demand in China continues to grow, although at a slower pace than in previous years.

According to China’s news agency Xinhua, Sinopec and CNOOC will be increasing this winter’s gas supply compared to the volumes they provided in the previous heating season, while China National Petroleum Corporation (CNPC) will boost natural gas production from major gas fields in the country.  

Sinopec is set to boost its natural gas supply for north China by 15.5 percent to 8.81 billion cubic meters (bcm), while CNOOC will raise its gas supply by 1.5 bcm from last season, to 24.5 bcm.

China is stepping up its coal-to-switch campaign to fight pollution, although it has now adopted a more measured approach to the switching in order to avoid gas shortages and soaring liquefied natural gas (LNG) prices.

Gas demand in China continues to rise, but at a weaker rate than in the past few years, due to slowing economic growth. Chinese government estimates show that Chinese natural gas consumption is set to grow by 10 percent this year, compared to 17.5-percent growth last year.  

Related: The End Of The Asian Oil Product Glut

Currently, China is not expected to see significant shortages in its winter gas supply, and Asian LNG spot prices are unlikely to shoot up as much as they did two years ago.

Last week, Asian LNG spot prices rose to an eight-month high with winter demand in the region already emerging, but LNG supply is enough to meet demand and will likely keep a lid on prices, traders told Reuters.

Buyers across Asia have mostly secured their winter LNG purchases, while supply from Australia, Russia, and the U.S. continues to rise, so the recent rally in LNG prices could soon come to an end, traders told Bloomberg this week.

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | 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