Bad Weather Does Not Stop Sinopec

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  • The ramp-up in gas supply is on account of another cold snap.
  • China’s Central Meteorological Observatory issued a “blue” warning on Nov. 19, signalling a cold front was expected to sweep across the whole country over Nov. 20-23, bringing blizzards, strong winds and a temperature drop of more than 14 degrees Celsius from north to south.
  • The company has built up an effective natural gas working storage volume of 1.79 billion cu m, including at the Wen 96, Jintan, Wen 23 and Ganghua storage sites, Sinopec said, adding that it has secured 27.2 Bcm of domestic and foreign natural gas resources for ensuring supply in the winter-spring season.
  • This will further alleviate gas shortages in the region.

Sinopec, China’s state-owned oil and gas corporation, announced on Nov. 22 that it has increased daily natural gas supplies to the north of the country by more than 10 million cubic metres in order to fulfil demand from local households and businesses amid the chilly weather as reported by S&P Global.

Blue warning

This accounts for almost 6% of the state-owned firm’s yearly gas supply and 10% of its domestic gas output.

The increase in gas supply is due to yet another cold spell.

On Nov. 19, China’s Central Meteorological Observatory issued a “blue” warning, indicating that a cold front would sweep across the country from north to south from Nov. 20 to 23, bringing blizzards, strong winds, and a temperature drop of more than 14 degrees Celsius.

The most recent two alerts were issued in mid-October and early November, respectively.

During the 7th meeting of the China-Turkmenistan energy cooperation, the director of the National Energy Administration and Turkmenistan’s State Minister agreed to expand cooperation in the natural gas and renewable energy sectors, and Turkmenistan said it was willing to increase pipeline natural gas exports to China, according to the NEA.

Sinopec

The Puguang gas field produced 26.5 million cubic metres per day, the Southwest gas field exceeded 24 million cubic metres per day, and the Fuling shale gas field produced up to 20 million cubic metres per day, according to Sinopec.

Sinopec said it has built up an effective natural gas working storage volume of 1.79 billion cubic metres at its storage sites in Wen 96, Jintan, Wen 23, and Ganghua, as well as secured 27.2 billion cubic metres of domestic and foreign natural gas resources to ensure supply during the winter-spring season.

Sinopec is now working on the second dock of its Tianjin LNG terminal, which is part of the Tianjin LNG phase 2 project and expects to have it operational by the end of November, according to the company.

This will help to alleviate the region’s gas shortages even more.

China’s natural gas demand increased in 2021, owing to the country’s economic recovery and decarbonization goals, both of which are likely to underpin future gas demand.

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Source: S&P Global

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