China pulls out of US$40bil gas deal with Australia (1/5/10)
However, the first cargo of liquefied natural gas (LNG) bought by PetroChina on the spot market arrived at Shanghai on Saturday, part of a plan to increase supply to ease domestic gas shortages in the winter. The 65,000 tons of LNG (around 90 million cubic meters after regasification) was carried by a Russian LNG carrier. It will be pumped into gas networks in Shanghai, allowing PetroChina to divert an equivalent amount of gas to other regions with high demand this winter, via its flagship west-to-east gas pipeline.
PetroChina, the top Chinese gas firm, will incur a loss of more than 60 million yuan ($8.79 million) on the imported gas, because it is priced higher than the state-set price at which it must sell to Shanghai.
PetroChina's first spot LNG purchase arrives home (1/4/10)
Moving forward, "China hopes to clinch more deals on liquefied natural gas (LNG) imports and speed up construction of LNG receiving terminals, gas pipeline and storage facilities this year, the country's energy head said. The country will take advantage of the current excess supply in the international LNG market to speed up negotiations of overseas gas purchases, Zhang Guobao [head of the National Energy Administration] said Monday.... He noted that construction of LNG receiving terminals including Zhuhai, Shenzhen and Shandong will be pushed forward this year."
China will also further develop major gas fields in central and western China as well as offshore gas resources to maintain fast increases in domestic gas output.
The government will also approve a third gas pipeline linking Shaanxi and Beijing and a new pipe connecting Qinghuangdao city in Hebei province to Shenyang, capital of northeastern Liaoning province.
[Article also has some notes on coal-to-liquids and coal-to-gas projects.]
China eyes LNG import deals, private oil stockpiles (1/4/10)
Earlier last month, PetroChina's little brother, SinoPec agreed to buy 2 million tonnes of liquefied natural gas per year for 20 years from ExxonMobil's Papua New Guinea LNG project. The gas will go to a planned LNG terminal at Qingdao in Shandong province, which will have an annual capacity of 3 million tons in its first phase, rising to 5-6 million tons a year in a later second phase, SinoPec's state-owned parent company, Sinopec Group, said on its website www.sinopecgroup.com.cn.
Sinopec has planned the Qingdao terminal for several years but it had made little progress as it has not been able to secure LNG supplies, lagging behind rivals CNOOC and PetroChina, which already have three and two terminals respectively, at various states of development. It is also waiting for approval on an LNG terminal it hopes to build in Zhuhai.
Sinopec signs up Exxon for first LNG deal (12/3/09)