China's new LNG projects to satisfy natural gas demand in winter
Source:Cfbond 2018-10-12 19:04
By Dai Qi
A project of the China National Offshore Oil Corporation (CNOOC) to provide liquefied natural gas (LNG) located in coastal metropolis Tianjin in northern China was put into production on Friday.
CNOOC's another LNG project in the same city is scheduled to be completed by Nov. 15 and put into production in advance to ensure an efficient supply of natural gas for the country.
These moves indicate that China is well-prepared to meet the high demand for natural gas during the winter heating season, which usually lasts from mid-November to mid-March in the northern part of the country.
During last winter's heating season, some parts of China saw a sharp imbalance between supply and demand. This year, the country's need for natural gas is still continuously on the rise.
Statistics from the National Development and Reform Commission showed that from January to August this year, China's apparent consumption for natural gas, which means the total amount of production plus imports minus exports, was 180.4 billion cubic meters, up by 18.2 percent year on year.
In a bid to relieve the pressure, China has been working hard to increase and diversify the sources of its natural gas supply since the spring of this year.
According to a report of the Economic Information Daily, from January to August this year, China's natural gas output had accumulated to 103.6 billion cubic meters, up by six percent year on year.
Meanwhile, its natural gas imports had reached 78.9 billion cubic meters, up by 38.6 percent.
However, challenges to threaten the supply exist such as higher costs and possible severe weather.
"We have prepared many alternatives to confront with potential risks", said Zheng Hongtao, a deputy manager on trade from CNOOC.