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PetroChina dependence hits Hunan’s gas demand

Hunan province’s overwhelming dependence on China’s largest upstream company for gas supplies offers a case study in the importance of supply diversification Hunan province’s overwhelming dependence on China’s largest upstream company for gas supplies offers a case study in the importance of supply diversification.
By Tang Tian 4 July 2019 Asia Pacific / Supply & Demand 0 34365
PetroChina supplies gas to Hunan via the second West-East Pipeline and the Zhongwu pipeline. (PetroChina)

The key issue: The landlocked Chinese province of Hunan consumed 15% more gas in 2018 than in 2017, below the average national increase of 18%.

Interfax analysis: An over-reliance on supply-strapped PetroChina is hampering Hunan province’s efforts to hit a demand target of 8.50 billion cubic metres by 2020. PetroChina provided more than 80% of Hunan’s gas supplies last year, but the company is unlikely to boost deliveries to the central province significantly over the next few winters as it must continue...