China has been stepping up efforts to boost natural gas supplies as coal market continues stabilizing and the winter came earlier this year, with daily supply rising 11% from a year ago to exceed 1 billion cubic meters (bcm) since November, Global Time reported, citing data released by the state-owned pipeline giant PipeChina on November 24.
Even though global natural gas prices surged, China's production and supplies would remain comparatively stable, especially in residential heating use. As of mid-November, the price of LNG in China declined by 1.7% to 7,508.4 yuan/t ($1,176/t) compared with the beginning of the month, data showed from the National Bureau of Statistics.
China is less likely to suffer another power crisis similar to late October, when a coal supply shortfall and the resultant high prices weakened electricity generation, forcing many factories to close down.
PipeChina's daily natural gas delivery exceeded 600 mcm two weeks earlier than last year, and plans to buy 11 bcm of gas for the remainder of the year and the next spring next year, equivalent to a 14.9% yearly growth, according to Global Times.
Additional 11 mcm natural gas daily supplies had been added by Sinopec to users in northern China, and the nationwide supplies had climbed to 180 mcm, Global Times reported earlier this week.
China National Petroleum Corp (CNPC)'s gas storage facility in Lamadian town, China's first underground gas storage station with a capacity of 1 mcm a day, has started supplying gas to northeastern China, according to the media citing an announcement from CNPC last week.
This year's natural gas started earlier than usual affected by high global prices and tight supplies, increasing the need of preparing more storage capacity and expanding imports, Global Times said, citing an industry insider.
Some industry insiders estimated that China's natural gas demand this winter would rise 10% compared with the same period in 2020, yet China's supply is able to meet demand.
(Writing by Emma Yang Editing by Tammy Yang)
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