China’s gas demand is likely to increase in 2023, but the outlook for LNG is cloudy – #Chinas #gas #demand #increase #outlook #LNG #cloudy
TOKYO, March 3 (Reuters) – China’s natural as the economy recovers gas demand is likely to increase this year, but whether the country’s liquefied natural gas (LNG) imports resume will depend on spot prices, PetroChina International’s chief executive said.
China’s LNG imports last year were approx 20% down to 63.4 million tonnes, zero COVID lockdown measures and high spot prices as demand hit, pushing it to the world’s No. 2 LNG buyer behind Japan.
Yaoyu Zhang, general manager of global LNG and new energies at PetroChina International, told Reuters on the sidelines of an energy conference in Tokyo. gas we expect consumption to return to a healthier level this year than in 2022.”
China’s natural gas consumption in 2022 366.3 billion cubic meters, which decreased by 1.7% compared to the previous year.
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“This year, we expect at least the same level (as in 2022) – we believe that (China’s) economy may recover a little more,” Zhang said.
State China National PetroChina, the listed arm of the Oil Corporation, is the country’s largest gas importer. LNG is used to supplement domestic gas production and pipeline imports.
As China’s economic activity picks up after the end of the lockdowns, its domestic LNG demand this year 10% could rise, the International Energy Agency said, but Zhang remained cautious on forecasts.
“This year, we will take a similar approach depending on the price level in the spot market, then decide whether we want to buy more or less,” Zhang said.
“If spot LNG prices if it remains as high as last year, we do not expect China’s LNG purchases to increase rapidly.”
Russia It is one of the main sources for pipeline and LNG supply to China. Despite Moscow’s decision to send troops to Ukraine last year, the two countries remain close allies. Beijing, Russia military refrained from calling his move an invasion.
Zhang noted that PetroChina, through CNPC, is a partner in the Yamal LNG and Arctic LNG 2 projects in Russia, and through the pipeline Russia gets gas.
“I don’t expect these relations to stop because there are currently no sanctions on LNG. “I think it will be business as usual – we will raise our capex – pipeline and LNG,” he said.
Russiaespecially once a major Europe wants to increase pipeline gas supplies to China through new routes as its market declines.
Reporting by Yuka Obayashi and Katya Golubkova; Edited by Sonali Paul
Our standards: Thomson Reuters Trust Principles.
2023-03-03 09:31:41
Source – reuters
Translation“24 HOURS”