China’s natural gas imports are more diversified

According to information released recently by PetroChina, as of July 23, the Central Asian natural gas pipeline and the Sino-Burma natural gas pipeline have delivered 300 billion cubic meters of natural gas to China since they were put into operation.

China’s natural gas imports have increased year by year, from 57.8 billion cubic meters in 2014 to 126.2 billion cubic meters in 2018, with a compound growth rate of 22%. China’s natural gas import resources include pipeline gas and liquefied natural gas (LNG), mainly from Central Asia and Myanmar, and LNG mainly from Australia, Qatar, Malaysia and Myanmar. Indonesia, Papua New Guinea, the United States and other countries. The increase of pipeline gas import is relatively limited, and LNG import resources have been in a multi-channel state in recent years. Central Asia natural gas pipeline and China-Myanmar natural gas pipeline are the main channels to ensure China’s natural gas energy security.

On April 3, 2006, China and Turkmenistan signed a framework agreement on gas pipeline construction and long-term natural gas supply. Central Asia natural gas pipeline is through Uzbekistan and Kazakhstan, with a single mileage of 1837 km. AB pipeline was put into operation in December 2009 and C pipeline was put into operation in June 2014. The third pipeline currently has a gas transmission capacity of 55 billion cubic meters per year. In December 2009, CNPC and the Ministry of Energy of Myanmar signed an agreement on the rights and obligations of China-Myanmar crude oil pipeline. The first station of China-Myanmar natural gas pipeline is located in Jiaoyao Port on the west coast of Myanmar. It is imported from Ruili, Yunnan Province. It was completed and put into operation in July 2013 with a gas transmission capacity of 5.2 billion cubic meters per year.

“The two major pipelines are important projects of” one belt and one road “. The construction and operation of pipelines have brought nearly 10000 jobs to the countries along the border, and the total taxes and fees have been paid more than 2 billion US dollars. The oil industry of the relevant countries has also been promoted, and the goal of mutual benefit and win-win has been achieved, which has effectively deepened the political economy of China and its host country. Cooperation.” Sun Yang, an information analyst at Zhongyu, said that as one of the three major energy sources, natural gas is the main clean energy source in the future. Further promotion of natural gas development in China also needs to be supplemented by imported natural gas.

The proportion of LNG imports in China’s total natural gas imports has increased year by year. Since 2017, imports of LNG have exceeded imports of pipeline gas. In 2018, LNG imports accounted for 59% of total natural gas imports. In addition to the signing of long-term associations with Australia, Qatar, Malaysia and Indonesia by PetroChina, Sinopec and CNOOC, Chinese traders are also active in LNG spot market procurement. In terms of pipeline gas, PetroChina and Sinopec have strengthened communication and coordination with various resource parties in Central Asia and Myanmar to ensure the normal supply of pipeline gas.

In 2018, there were 26 natural gas import countries in China, 10 more than in 2016. The new countries are Algeria, Equatorial Guinea, Angola, Canada, the Netherlands, Britain, France, Japan, Cameroon and Egypt.

From the point of view of import enterprises, the LNG import volume of CNOOC, PetroChina, Sinopec and other enterprises from 2016 to 2018 shows a significant growth trend. “CNOOC’s LNG imports declined from 62% in 2016 to 50% in 2018, but the decline slowed down in 2018, because CNOOC’s receiving stations and business scope in the north are relatively limited and there is competition from some new buyers in the south. On the contrary, PetroChina and Sinopec’s import share has increased steadily. Jin Lianchang gas analyst said.

It is noteworthy that in 2018 CNPC and CNOOC signed a large number of long-term agreements with foreign oil companies. CNPC signed LNG import contracts with Cheneil Energy Company, Qatar LNG Company and ExxonMobil. CNOOC and Malaysian Petroleum and Gas Company signed five-year LNG contracts of 400,000 tons per year. Woodfibre signed a 13-year contract of 750,000 tonnes per year, and the long-term agreement with Dodall increased from 1 million tonnes per year to 1.5 million tonnes per year. With the early LNG contract signed by CNOOC and BP coming into effect in 2019, the new LNG contract will exceed 10 million tonnes.

“In 2018, China imported 51.7 billion cubic meters of natural gas pipelines from Central Asia and China-Myanmar. The importance of these two pipelines is self-evident.” Sun Yang said that Central Asia accounted for 94% of pipeline gas imports in 2018, while China and Myanmar accounted for 6%.

In addition, the natural gas imported by PetroChina from Kazakhstan in 2019 will double to 10 billion cubic meters compared with 2018; the eastern natural gas pipeline between China and Russia is expected to supply gas to China by the end of 2019, with an annual delivery of 38 billion cubic meters of natural gas, which will form three major natural gas pipeline gas transmission systems in Northwest, Southwest and Northeast China, and offshore natural gas. The system jointly guarantees domestic natural gas supply.