Chinese major Sinopec posts fall in net profits on weak domestic natural gas and petrochemicals markets
China Petroleum and Chemical Corp. (Sinopec), one of the world’s top 10 oil and gas companies and a significant liquefied natural gas importer to back up its refining and petrochemical activities, reported a 21 percent increase in annual revenues but net profits dropped by almost the same amount on weak domestic demand.
LNG importer CNOOC starts first deepwater gas field output in China fully operated by local company
China National Offshore Oil Corp, the Chinese major and largest LNG importer, has started production at the first deepwater natural gas field fully operated by a Chinese company.
CNOOC said the Lingshui 17-2 field started production in the South China Sea.
The field is expected to reach peak production of 328 million cubic feet of natural gas and 6,751 barrels of condensate per day by 2022.
CNOOC said the Lingshui 17-2 field would have 11 production wells when fully completed.
The new field would bring CNOOC's total gas production capacity in the South China to more than 13 billion cubic metres per annum, the equivalent of around 9.6 million tonnes per annum of LNG.
CNOOC said in its statement that Lingshui 17-2 was part of the company’s plan to significantly increase its gas output to cut carbon emissions over time.
In its LNG activities CNOOC has recently expanded the planned storage capacity from six tanks to 10 tanks for the Yancheng-Binhai Port import terminal now under construction in the eastern province of Jiangsu.
Phase one will have an annual receiving capacity of 3 MTPA and will be completed by 2022, including the first four 220,000 cubic metres full containment LNG tanks.
The company added that the Binhai LNG terminal project would also be an important asset in the industrial upgrade of the Yangtze River Economic Zone.
CNOOC has the largest regasification capacity of the Chinese majors with a presence in eight of the existing 22 import terminals, even after state-backed PipeChina bought and opened up several CNOOC-owned terminals to third-party access.
CNOOC also reportedly purchased almost a dozen additional LNG cargoes for delivery between July 2021 and March 2022 as demand in southern China is expected to remain strong as well as in the north and eastern industrial belts.
Gazprom boosts pipeline gas to China in competition to LNG and studies new route across Mongolia
Gazprom and China National Petroleum Corp. have held talks on the increasing deliveries of pipeline natural gas to Northern China from Russian in the Power of Siberia pipeline project in competition with LNG cargoes, with the Chinese asking and receiving higher daily volumes.
