Sinopec plans to import 17.4 million mt of LNG in 2021 and produce 34 Bcm of natural gas, says an article on SP Global.
Efforts to meet domestic demand
They plan to import 17.4 million mt of LNG in 2021 and produce 34 Bcm of natural gas including about 12 Bcm of shale gas, in an effort to meet domestic demand, while lowering carbon emissions, senior officials said during the company’s Q1 conference call on April 29.
“The Chinese state-owned oil and gas giant imported 5.2 million mt of LNG in the first quarter, which was stable from the same year-ago period, with a slight import loss”, deputy head of Sinopec’s finance department, Song Zhenguo, said.
In comparison, China imported 67.07 million mt of LNG in 2020 and 15.25 million mt in Q1 last year, data from the General Administration of Customs showed.
“In an effort to lower losses and boost profits, the company plans to adjust its procurement structure by optimizing the volumes taken via long-term and short-term contracts, as well as from the spot market, facilitated by hedge tools, deputy head of operation & management department”, Li Li said.
According to the Data
As the second-largest natural gas producer in China, Sinopec raised its output by 16.8% year on year to 8.26 Bcm in Q1 to contribute 15.5% to the country’s domestic production during the quarter, according to its Q1 report and data from the National Bureau of Statistics.
Sinopec maintained its target of producing 34 Bcm of gas in 2021, as well as the targets for 2022 and 2023 at 38 Bcm and 40 Bcm, respectively.
All-in-cost for the domestically produced shale gas was below $1/cm, and will likely fall further as rising production will dilute the cost per unit of gas produced, as the facilities and technology are fixed.
The company targets to produce 12-12.5 Bcm of shale gas in 2021, from 10.6 Bcm in 2020, lifting its shale gas production by 6%-10% annually, according to vice president and secretary to the board of directors, Huang Wensheng.
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Source: SP Global
