Amid expectations that China’s natural gas production will outpace crude oil production by 2050, China witnessed an increase in its natural gas production last September.
The country’s total natural gas production reached 15.7 billion cubic meters last month, up 7.1 percent year on year, according to the National Bureau of Statistics.
Production also increased by 15.2% from September 2019; That puts the two-year average growth at 7.3%.
Increasing Natural Gas Production
China’s natural gas production reached 151.8 billion cubic meters during the first nine months of the year, up 10.4 percent from the previous year, according to data from the National Bureau of Statistics.
Natural gas imports rose 22.7% from the same period last year to 10.62 million tons, in an attempt to compensate for the decrease in coal production.
However, China’s tendency to import natural gas with this intensity has contributed to the exacerbation of the global gas crisis, to increase the prices of gas supplies globally, and to increase the demand for LNG shipments in the context of the sharp competition between Europe and Asia for the forward purchase of LNG shipments.
The US company, Venture Global, signed – yesterday, Saturday – 3 contracts to export about 5 million tons of liquefied natural gas, annually, to China.
Venture Global has signed two contracts with China’s state-owned Sinopec to supply about 4 million tons of liquefied natural gas annually to Beijing over a 20-year period, according to the US Department of Energy’s website.
Venture Global also signed a third contract with Unipec, the trading arm of Sinopec, to supply 1 million tons of LNG annually to China, over a period of 3 years.
Last year, China imported about 100 million tons of liquefied natural gas, but it will not be able to import a large amount this season, as a result of the energy crisis it is experiencing with the rest of the world, and America’s limited ability to export today.
China’s energy demand has increased by 15% this year so far.
China tried to increase its production of coal, which is the main fuel for generating electric power in the country, but coal production only rose by 5%.
Source : Attaqqa