China’s appetite for LNG shows no signs of waning. The country, which leap-frogged South Korea to became the second-largest importer of LNG in 2017, just over a decade after its first ever shipments, is now on track to surpass Japan to become the world’s biggest buyer of super-chilled fuel in just over five years. Last year the country boosted imports 41 percent in 2018 to 54 million tonnes (mt), building on growth of almost 50 per cent in 2017, and analysts at Platts project that LNG demand will hit 68 million mt/year by 2023.
The government’s dash-for-gas, given added impetus by the three-year ‘blue sky defence’ policy to reduce pollution, means Chinese buyers are keen to source reliable supplies and build out storage and pipeline infrastructure in order to avoid the kind of supply crunch that marked the unusually cold winter of 2017/18. The emphasis on security of supply has boosted investment in domestic gas production, which grew by 7.5 per cent in 2018, as well as gas supply deals for piped gas from resource-rich neighbour Russia. LNG, however, gives China the comfort of diversity of supply from producers from around the world.
This is great news for project developers, particularly those outside the US, where a number of mega-projects awaiting final approval face being shut out of the fastest-growing LNG market in the world because of the simmering trade spat between Washington and Beijing. With Chinese tariffs on US LNG imports rising to 25 per cent from June 1st, developers in the US face additional headwinds, creating opportunities for rivals seeking to capture market share in this booming market.
It makes this the perfect time to cement relationships with Chinese gas buyers, many of whom will be attending the China LNG & Gas International Summit & Exhibition in Beijing this October. Understanding what buyers are looking for, whether it’s the state energy giants looking for contract flexibility or city gas buyers seeking secure supplies to meet booming demand in industrialised centres, can be key to striking a deal, which is why CWC’s China LNG Summit is a must-attend event.
The summit, now in its fifth year, brings together influential established and emerging gas buyers including PetroChina, CNOOC Gas & Power, Beijing Gas, ENN, Guangzhou Gas and Huadian.
Also in attendance at the Park Hyatt in Beijing on the 16-17 October will be key decision makers from Chinese government and international stakeholders, including Shell, ExxonMobil, Qatargas and Cheniere, creating unparalleled opportunities for delegates to network, debate and secure deals. There will be updates on the regulations and policies that shape the gas market in China as well as insight into new developments in LNG & gas infrastructure & distribution in the country, including the creation of a national pipeline company, which was revealed by the National Development & Reform Commission in March 2019 and was widely interpreted as a signal of increased liberalisation of the oil and gas sector. For anyone with an interest in how these developments will influence China’s fast-growing LNG market, this is one event not to be missed.
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New LNG importers – often with the backing of national governments – are stepping up to help take prospective export projects forward, according to industry executives. In doing so, these budding importers are assuming the pivotal role that has been played by Japanese and South Korean companies in the past.
The LNG market is fragmenting, with new companies and new countries coming to the fore as importers, Andrew Walker, vice president of strategy at Cheniere, told the China LNG & Gas International Summit in Beijing on…
China’s natural gas demand growth could be tempered this year as the country pursues coal-to-gas switching objectives in a more measured fashion than in 2017, officials and company executives told an event in Beijing Wednesday.
Speaking at the 4th CWC China LNG & Gas International Summit, Wu Hongkun, CNOOC vice president of trading and marketing, said China’s annual gas consumption growth rate in 2018 could slip below the 15.3% year-on-year growth seen in 2017.
China’s gas consumption is expected to grow by 11.8% in the first quarter of 2018, he added.
Government officials at the conference said coal-to-gas switching will continue apace this year, but further calibration will be taken on the steps taken to achieve targets.
China’s coal-to-gas initiatives “out-performed expectations” last year, possibly leading to gas shortfalls in certain regions, according to Zhang Yuqing, former Deputy Director of the National Energy Administration.
“We are very optimistic about China’s gas demand growth, but there needs to also be effective policies to ensure these targets are reached,” Wu said.
Northern China burns huge amounts of coal for winter heating, which is considered as one of the biggest causes of the smog that affects the region. In March 2017, the government set coal replacement targets to curb the amount of coal burn for winter heating in Beijing, Tianjin and 26 other Northern cities, under the ‘2+26’ policy. Click here to read more…
China’s LNG imports increased almost 50% in 2017, overtaking South Korea as the world’s secondbiggest
importer of liquefied natural gas. Winter demand is currently boosting this increase and
China’s imports of LNG hit a record of 5.03 million last December.
Read more – https://www.chinalngsummit.com/wp-content/uploads/2018/02/China-LNG-Press-Release-Jan-2018.pdf
Ye Yishu, President, CNOOC Gas & Power Trading & Marketing Ltd gives a company business update
Yao Li, CEO, SIA Energy discusses the China Gas Market in 2017
Cheng Zhaohui, Director and General Manager, Huadian, Natural Gas Singapore Pte Ltd presents on LNG – Continue to Buy?
CWC LNG Americas Exec Summary 2017.Pat Roberts Reality Bites
View the Webinar here http://world.cwclng.com/webinar-recording-galway-group-2017/