CNOOC likes nat gas

Looks to liq­ue­fied nat­u­ral gas as an­other pil­lar af­ter oil

China Daily (USA) - - FRONT PAGE - By ZHENG XIN zhengxin@chi­

China’s top off­shore oil pro­ducer is eye­ing liq­ue­fied nat­u­ral gas as an­other pil­lar in­dus­try af­ter oil.

“Liq­ue­fied nat­u­ral gas will be­come an­other im­por­tant pil­lar in­dus­try for the com­pany, as newen­ergy is play­ing an in­creas­ingly sig­nif­i­cant part in the na­tional and the global en­ergy in­dus­try,” said Jin Xiao­jian, gen­eral man­ager of strat­egy and plan­ning at the State-owned China Na­tional Off­shore Oil Corp.

Ac­cord­ing to Jin, gas pro­duc­tion ac­counts for 18 per­cent of the com­pany’s to­tal, with oil ac­count­ing for the re­main­ing 82 per­cent. How­ever, the gas pro­duc­tion pro­por­tion will see a grad­ual rise to around 20 per­cent in the near fu­ture, as large pro­duc­ers world­wide are ramp­ing up pro­duc­tion.

“The com­pany has be­come the na­tion’s big­gest LNG trader and the world’s third-largest, and has im­ported liq­ue­fied nat­u­ral gas from around 20 coun­tries world­wide, in­clud­ing Aus­tralia, In­done­sia and Qatar.”

Ac­cord­ing to CNOOC, the com­pany’s nat­u­ral gas busi­ness cur­rently cov­ers 78 cities na­tion­wide, with LNG sales reach­ing 12.66 bil­lion cu­bic me­ters in the first half of 2016, a year-on-year in­crease of 11.7 per­cent.

The firm’s LNG im­ports soared to 7.675 mil­lion met­ric tons, an in­crease of 24.4 per­cent year-on-year.

The LNG im­ported by CNOOC ac­counts for 69 per­cent of the coun­try’s to­tal, it said.

Long used in the power in­dus­try for res­i­den­tial heat­ing, nat­u­ral gas is a clean en­ergy ex­tracted from the ground and shipped through pipe­lines. En­ergy com­pa­nies world­wide have started ship­ping the cheaper and greener form of en­ergy be­tween coun­tries in re­cent decades.

Ac­cord­ing to a re­port by Ernst& Young, global de­mand for LNG is pre­dicted to nearly dou­ble be­tween 2012 and 2030.

Cur­rent de­mand for liq­ue­fied gas is com­ing mainly from in­dus­tri­al­ized Asia, with Ja­pan and South Korea ac­count­ing for more than half of global de­mand.

China’s in­ter­est in nat­u­ral gas is par­tic­u­larly in­creas­ing be­cause of ef­forts by the au­thor­i­ties to move its en­ergy sup­ply away from an over­whelm­ing reliance on coal, it said.

Be­ing the world’s largest en­ergy con­sumer, China seeks to raise the share of less-pol­lut­ing nat­u­ral gas to 10 per­cent of its en­ergy mix by 2020 from 6 per­cent last year.

China’s gas con­sump­tion in 2015 ex­panded by 3.7 per­cent to 191 bil­lion cu­bic me­ters, ac­cord­ing to an an­nual re­port from China Na­tional Pe­tro­leum Corp’s Re­search In­sti­tute of Eco­nom­ics and Tech­nol­ogy, while gas de­mand growth this year might ac­cel­er­ate to about 6 per­cent.

Ac­cord­ing to Jin, to fur­ther boost the use of liq­ue­fied nat­u­ral gas from an over­whelm­ing reliance on coal, the gov­ern­ment should en­cour­age gas op­er­a­tors to fur­ther share their pipe­lines and net­work, while mak­ing the gas price mar­ket-ori­ented.

Three years ago, Pres­i­dent Xi Jin­ping launched China’s am­bi­tious Belt and Road Ini­tia­tive, to link vast transcon­ti­nen­tal swathes with a com­mon eco­nomic thread. The ini­tia­tive brought un­prece­dented op­por­tu­ni­ties to com­pa­nies world­wide to ex­pand their busi­ness and ac­cess new mar­kets. China Daily will present a se­ries of in­ter­views with top ex­ec­u­tives of for­eign com­pa­nies, look­ing at the im­pact of the ini­tia­tive on their op­er­a­tions as well as mar­kets. On­drej Frydrych, chief ex­ec­u­tive of­fi­cer of Home Credit Group in China, tells how the in­ter­na­tional con­sumer fi­nance provider will work closely with Chi­nese part­ners to fur­ther di­ver­sify their earn­ing abil­ity.


A CNOOC worker sets up scaf­fold­ing at a con­struc­tion site near Qing­dao, Shan­dong province.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.