The Rising Influence of Rising Affluence

[old man]

This helps to explain China's recent efforts to secure NG supply.
John

China's natural gas producers to step up production

08:50, November 25, 2009

China's major natural gas producers are now increasing their production and limiting the industrial use of gas for residential use due to the gas shortage from the recent cold weather, according to a Wall Street Journal report Tuesday.

China Petroleum & Chemical Corporation (Sinopec) said Tuesday that the company plans to advance its average daily output of natural gas to 23.8 million cubic meters, up 7.6 percent compared with the previous quarter, a new record high.

The company said the daily gas output reached 24.6 million cubic meters from November 11 to 18.

Sinopec has also cut the gas supply to its oil refining subsidies, including Yanshan Petrochemical Company and Qilu Petrochemical Corporation by 850,000 cubic meters a day to ensure enough supply to households.

China National Petroleum Corporation (CNPC), China's largest oil producer and PetroChina Co.'s parent company, said Tuesday on its website that PetroChina will cut the daily gas supply to industrial users by 10 million cubic meters to meet residential demand.

According to CNPC, industrial users, including gas power stations, oil refinery and chemical plants, consume 30 percent of the total natural gas consumption nationwide.

National Development and Reform Commission (NDRC) statistics indicate that in the first 20 days of this month, PetroChina's daily gas supply increased 22 percent year-on-year to 182 million cubic meters.

The demand for natural gas increased dramatically as a result of freezing temperatures at the beginning of this month, and serious natural gas shortages afftected some cities, including Wuhan, Chongqing, Nanjing and Hangzhou, the NDRC said.

As the weather is warming up in areas of the country, the pressure for providing gas in some parts of the country is easing, but demand is expected to increase in the next few months with winter approaching.

The peak seasons for the consumption of natural gas are December and January, and the average daily gas consumption in the north part of China is expected to reach 71 million cubic meters, according to PetroChina.

Lin Changhai, a PetroChina official, said that in peak seasons, the gas supply gap in North China will reach 8 million cubic meters a day, and the south part of China may have a supply shortage of 5 million cubic meters to 6 million cubic meters.

http://english.people.com.cn/90001/90778/90860/6822956.html