Main­land moves to use more nat­u­ral gas

Nation will be­come more de­pen­dent on im­ported en­ergy

China Daily (Hong Kong) - - BUSINESS | MARKETS - By ZHENG XIN zhengxin@chi­nadaily.com.cn

China Petro­chem­i­cal Corp, Sinopec, aims to sell around 10 bil­lion cu­bic me­ters of nat­u­ral gas dur­ing the heat­ing sea­son to meet rising de­mand.

The com­pany plans to sell 9.994 bil­lion cu­bic me­ters of nat­u­ral gas, a year-on-year 27 per­cent in­crease com­pared with 7.89 bil­lion cu­bic me­ters last year, the com­pany said in a state­ment.

Nat­u­ral gas de­mand in north­ern China dur­ing the heat­ing sea­son is ex­pected to be three times that of the non­heat­ing sea­sons, the com­pany said.

Ac­cord­ing to BMI Re­search, which pro­vides macroe­co­nomic, in­dus­try and fi­nan­cial mar­ket anal­y­sis, the out­look for nat­u­ral gas in China re­mains positive, with av­er­age an­nual growth over 2016-25 ex­pected to come in at 5 per­cent. Both pro­duc­tion and con­sump­tion are set to ex­pe­ri­ence healthy growth over the next decade.

As the coun­try’s rising en­ergy needs will not be met by do­mes­tic pro­duc­tion, China will be­come in­creas­ingly de­pen­dent on crude oil and nat­u­ral gas im­ports, ac­cord­ing to BMI.

All of Sinopec’s up­stream gas fields are now in full load pro­duc­tion. The com­pany is also speed­ing up the in­fras­truc­ture construction now un­der way, in­clud­ing the pipe­lines in Tian­jin and the Sichuan-to-East China gas pipeline projects in or­der to make sure these can be put into op­er­a­tion by the end of the year.

per­cent

Ac­cord­ing to Qu Guangxue, spokesman for PetroChina, which sup­plies 71 per­cent of the coun­try’s nat­u­ral gas, the com­pany im­ports some 44 bil­lion cu­bic me­ters of nat­u­ral gas each year, 20 per­cent of its to­tal sales.

Sinopec will im­port 21 shiploads of liq­ue­fied nat­u­ral gas be­tween De­cem­ber 2016 and Fe­bru­ary 2017 to meet soar­ing de­mand, it said.

Figures from the cus­toms of­fice, on Wed­nes­day, re­veal that China’s Novem­ber LNG im­ports jumped 46.6 per­cent from a year ear­lier to 2.66 mil­lion met­ric tons, the high­est level on record.

China has quickly risen to the top ranks in global en­ergy de­mand over the past few years. The coun­try’s shift to a cleaner en­ergy struc­ture has also en­sured a grow­ing de­mand for nat­u­ral gas in the past few years.

BMI Re­search says longert­erm growth will be driven by greater ex­ploita­tion of un­con­ven­tional en­ergy sources, such as shale and coal-bed meth­ane.

Ac­cord­ing to Sinopec, the Ful­ing shale gas project in the Sichuan Basin of South­west China, which com­menced pro­duc­tion in 2015, now has an an­nual ca­pac­ity of 5 bil­lion cu­bic me­ters.

The project, China’s largest shale gas project to date, is plan­ning to boost its shale gas out­put ca­pac­ity to 10 bil­lion cu­bic me­ters by 2017, the re­search said.

Ac­cord­ing to Wang Zi­zong, deputy chief en­gi­neer of Sinopec Group, the com­pany will en­sure 20 smoke­less cities in China us­ing geo­ther­mal tech­nolo­gies dur­ing the 13th FiveYear-Plan (2016-20) pe­riod. This will in­crease geo­ther­mal heat­ing and cool­ing ca­pac­ity by 100 mil­lion square me­ters and 500 MW of in­stalled geo­ther­mal ca­pac­ity.

Sinopec built China’s first smoke­less town us­ing geo­ther­mal power in Xiong county of He­bei prov­ince, mak­ing it a repli­ca­ble and sus­tain­able demon­stra­tion project.

the year-on-year in­crease in the amount of nat­u­ral gas Sinopec plans to sell

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