In this issue

 

China’s m/m LNG offtake continued to grow by 0.66mmt in December, increasing robustly by 9.7% to 7.48mmt. During the last month of last year, the country thus continued its strong…
Fears spread that a global recession is looming if China fails to contain the spread of the Coronavius. Demand for oil, LNG and pipeline gas are impacted as millions of…
Rampant US gas supply has been outpacing demand growth for the past year, slashing prices in Europe and Asia. Some US exporters are considering shutting in production as record low…
The Chinese government has approved Beijing Gas’ plans to build a 5 mtpa LNG import terminal near Tianjin City by 2022 to help boost regional gas imports. The economically thriving…
China’s hunger for gas surpasses initial estimates, hence Gazprom is evaluating a second interconnector in the Far East. With the launch of the landmark ‘Power of Siberia’ pipeline, Gazprom’s focus…
For new gas pipelines, timing is everything. This especially applies to the new 38 Bcm/y ‘Power of Siberia (PoS)’ link that will elevate China to become Gazprom’s second largest export…
China’s Blue Sky Policy envisages boosting the share of natural gas in the energy mix from currently 7.5 percent to 15 percent by 2030 which requires substantial investment in LNG…
Keen to maximize China’s domestic oil and gas production and streamline imports, the government in Beijing’s is taking steps to bundle all onshore trunk pipelines owned by PetroChina, Sinopec Group…
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News Nudges

Freeport Train-3 aims to send cargoes to China

Commissioning of Freeport LNG Train 3 in early May has pushed the plant’s overall nameplate capacity to 15 mtpa, with developers sending some headline-catching cargoes to China. However, overall shipments are down nearly 15% amid subdued demand and low LNG prices. The economic outlook for China – and by extension its LNG demand growth - is uncertain, the country’s latest economic data shows. Finding portfolio players willing to commit to long-term liquefaction tolling agreements (LTA) under prevailing conditions will be difficult, LNG Unlimited Data finds. Consequently, our analysts do not expect Freeport LNG to take its Train 4 FID any time soon, though Train 3 stared operations in early May.


PetroChina vows to slash capital spending

PetroChina plans to “dynamically optimise” its imports in response to record-low oil prices and subdued demand. The aim is to downsize capital spending this year from a previously planned 295 billion yuan ($41bn). The state-controlled company in early May reported a net loss of 16.23 billion yuan ($2.29bn) for Q1-2020 versus a profit of 10.24 bllion yuan ($1.44bn) in the prior-year quarter. Production targets have been lowered in the wake of the coronavirus crisis, as PetroChina's crude oil throughput at refineries fell by 9.6% at the height of the pandemic, reducing profits. Natural gas output increased 8.7% to 1,086.9 billion cubic feet (bcf), driven by capacity build-out.


Petronas supplies LNG in ISO containers to China

Malaysia’s state energy company Petronas has signed a sales and purchase agreement with Tiger Clean Energy to fill LNG into ISO containers at a tank filling facility at Sarawak, Borneo, for onward shipment to China. The LNG-filled containers would subsequently be trucked to remote locations in China without access to the country’s national gas pipeline grid.