China may import up to 165 bln cubic meters of LNG by 2030 to meet increasing demand

minutes 2018/11/23 08:27:21
China's Financial News, China News ,China

Nov 23, 2018 (China Knowledge) - China may be importing up to 165 billion more cubic meters of liquified natural gas (LNG) annually by 2030 as its existing sources will not be able to cope with the rising demand in the country.

It is expected that China will need between 500 billion to 600 billion cubic meters of LNG per year by 2030. Currently, the country has the capacity to produce 200 billion cubic meters worth of LNG and will be able to add 75 cubic meters worth of capacity once its projects under construction are completed and running at 80% capacity.

Pipeline imports from Central Asia, Myanmar and Russia will add another 160 billion cubic meters leaving the country with a deficit of between 65 billion to 165 billion cubic meters.

The country has limited LNG sources, and imports are important to the country to meet its demand. Domestic sales of LNG in the first 8 months of this year reached 110 billion cubic meters with 48 billion cubic meters coming from imports. The country’s liquefied natural gas (LNG) imports were 4.6 mln tons in October, a year-on-year increase of 29.8%.

The country saw increased demand from its northern and eastern regions which resulted in a shortage of around 5 billion cubic meters and many are concerned that the same shortage could occur again.

The China National Petroleum, which is one of the country’s state-owned producers, producing nearly 70% of its LNG supplies has already taken measures to guarantee supply. The company’s gas fields produced 72.3 billion cubic meters of LNG in the first three quarters this year, 3.3 billion more compared to the same period last year.

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