• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 2 hours Shale Oil will it self destruct?
  • 14 hours NYT: Mass Immigration Roundups in U.S. to Start Sunday
  • 9 hours White House insider who predicted Iran False Flag, David Goldberg found dead in his New York apartment
  • 6 hours Carrot And Stick: North Korea Suggests It Might Lift Weapons Test moratorium
  • 11 hours Germany exits coal: A model for Asia?
  • 6 hours Migration From Eastern Europe Raises German Population To Record High
  • 3 hours South Korea imports No Oil From Iran in June - First-Half Imports Fall 37%
  • 37 mins Washington Post hit piece attacking oil, Christians and Trump
  • 1 hour A Silence is heard
  • 1 day U.S.- Taiwan: China Says Will Freeze Out U.S. Companies That Sell Arms To Taiwan
  • 1 day U.S. Administration Moves To End Asylum Protections For Central Americans
  • 6 hours Starlink Internet Courtesy of Tesla
  • 7 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House

PetroChina Looks To Secure LNG From World’s Biggest Exporter

Tanker

As Chinese demand for liquefied natural gas (LNG) surges amid the coal-to-natural gas switch, companies are looking to secure supplies—and one of the biggest Chinese firms is turning to the world’s biggest LNG exporter, Qatar.

PetroChina is in advanced talks with Qatar to buy short-term and long-term LNG supplies, Reuters reports, citing three sources briefed on the discussions.

China wants to secure LNG supplies and avoid last winter’s natural gas shortages, when natural gas demand spiked in the coldest months amid the massive push to have millions of households and thousands of industry users switch from coal to natural gas.

The push to cut pollution and make households switch to natural gas for heating resulted in China becoming the world’s second-largest LNG importer in 2017, outpacing South Korea and second only behind Japan, the EIA said this past winter.

Qatar, for its part, aims to boost its LNG export capacity from the current 77 million tons to 100 million tons annually by 2024.

According to two of Reuters’ sources, PetroChina and Qatar are negotiating a possible deal for several million tons of annual LNG supply beginning this year and ending in 2022. The Chinese company is also in talks to sign a longer-term deal with Qatar, according to a third source.

“The short-term deal is to supplement an existing long-term agreement,” one of the sources, a Beijing-based industry executive, told Reuters.

Related: Canada Frees Itself From Saudi Oil Imports

Although Qatar faces increased competition from Australia, the United States, and Russia, for example, it is one of the most competitive suppliers to China because of its low costs, large production volumes, and geographical proximity, Chen Zhu, managing director at consultancy SIA Energy, told Reuters.

Last week, China included for the first time U.S. LNG in its list of goods up for a potential 25-percent import tariff in the ongoing trade war. Chinese LNG end-users and suppliers say that they would likely deter spot procurement of U.S. LNG cargoes in the near term amid the uncertainty over the possible tariff.

By Tsvetana Paraskova 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