Sinopec plans to import 17.4 mill tonnes of LNG this year and produce 34 bill cu m of natural gas, including about 12 bill of shale gas, senior officials said during the company's first quarter conference call.
The Chinese state-owned oil and gas giant imported 5.2 mill tonnes of LNG in 1Q21, which was stable from the same period in 2020, with a slight import loss, deputy head of Sinopec's finance department, Song Zhenguo, said.
By comparison, China imported 67.07 mill tonnes of LNG in 2020 and 15.25 mill tonnes in 1Q20, data from the Chinese General Administration of Customs showed.
To lower losses and boost profits, Sinopec said that it planned to adjust its procurement structure by optimising the volumes taken via long-term and short-term contracts, as well as from the spot market, facilitated by hedge tools, deputy head of operation & management department, Li Li said, according to S&P Global Platts.
Sinopec is China’s second largest gas producer and raised its output by 16.8% year-on-year to 8.26 bill cu m in 1Q21 to contribute 15.5% to the country's domestic production during the quarter, according to its report and data from the National Bureau of Statistics.
Sinopec maintained its target to produce 34 bill cu m of gas in 2021, Song said, as well as 38 bill and 40 bill for 2022 and 2023, respectively.
Sinopec will keep its operating rate relatively stable, despite heavy maintenance in the coming months, Chen Yang, deputy head of board secretaries, said, Platts reported.