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    Cnooc to Hike Winter Gas Supply

Summary

Supply is expected to increase by 20% year-on-year.

by: Shardul Sharma

Posted in:

Natural Gas & LNG News, Asia/Oceania, Security of Supply, Corporate, Exploration & Production, Import/Export, Liquefied Natural Gas (LNG), News By Country, China

Cnooc to Hike Winter Gas Supply

Chinese state Cnooc November 14 said it will substantially increase the supply of natural gas during the ongoing winter season.

During the winter season, which runs from November to March, the company plans to supply 24.6bn m3 of natural gas to the domestic market, up 20% year-on-year. Cnooc will supply 6.1bn m3 of natural gas to seven northern provinces and municipalities, up 63.5% from last year. The state-owned firm supplies natural gas sourced from its offshore and coalbed methane fields as well as from overseas in the form of LNG. Cnooc is China's largest LNG importer and operates nine terminals. 

China’s gas consumption has been trending higher since early-2017 thanks to the government's aggressive policy of switching from coal to gas. Some areas in the north of the country faced severe gas shortages last winter. The state-owned explorers are working to ensure that this situation is not repeated this winter.  

Last month, State-owned Assets Supervision and Administration Commission of the State Council (SASAC), which is responsible for managing China’s state-owned companies, said China’s largest energy company PetroChina is preparing to supply sufficient gas to meet winter demand. SASAC said that PetroChina will focus on fully utilising its three LNG terminals at Jiangsu, Tangshan and Dalian by increasing its procurement of LNG, especially on the spot market.