Severe natural gas shortfalls that occurred in parts of China last winter are still fresh in people's memories, but officials from the country's major energy companies recently assured the public they have taken various actions to ensure the same thing will not happen again this year.
PetroChina is fully ready with gas supplies this winter, China Securities Journal reported, citing Wang Duohong, deputy general manager of its eastern China natural gas sales unit.
"What happened last year is the result of multiple factors, and our infrastructure facilities including gas depots, liquefied natural gas receiving stations and pipe networks were seriously lagging," Wang noted.
PetroChina is fully prepared this year, he stated. For example, it has made various preparations in response to equipment issues caused by extreme weather in the transmission of natural gas imported from Central Asia last year. The company has also scaled up its own natural gas production, he added.
"The events of last year have steeled people for [possible] short supplies, at least at the psychological level. Gas supplies are still expected to be tight this winter, but the situation should be better than last year," he explained.
CNOOC Gas & Power, an affiliate of China National Offshore Oil Corporation (CNOOC), has equipped all key points throughout the national pipe network with compressors to ensure reliable natural gas transmission, said Jin Shuping, its deputy general manager, adding it started pumping gas into storage depots this summer to maintain adequate reserves in winter.
"CNOOC is also collaborating with shipping companies to deliver surplus gas from Hainan, Guangdong and other southern regions to Hebei and Shandong, where natural gas tends to be in short supply, by both water and road," Jin noted.
As the first pilot project this year, CNOOC will ship 1,000 standard containers of liquefied natural gas from Hainan to Hebei. If the project is successful, another 500 to 1,000 LNG tankers will be sent to Shandong using the same method, it stated.
The Chinese government has encouraged local authorities in recent years to lower coal consumption and use natural gas instead to improve air quality. However, infrastructure renovation has not kept pace with the rather abrupt shift.
Last winter's frigid temperatures compounded the difficulties of this transformation and produced severe gas shortages in many parts of the country, especially northern regions. The resulting spike in gas prices prompted local governments to impose production bans and restrictions on large industrial gas consumers.
Sources:sxcoal
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