LNG

Supply cuts sideline Chinese LNG as demand booms

Booming winter demand for gas is passing by China’s small-scale LNG producers, as they have been largely sidelined by feedstock supply cuts Booming winter demand for gas is passing by China’s small-scale LNG producers, as they have been largely sidelined by feedstock supply cuts.
By Tang Tian 10 January 2018 0 29028
LNG tankers at the Jingbian Xingyuan LNG plant in Shaanxi. LNG tankers at the Jingbian Xingyuan LNG plant in Shaanxi. (Chemtex)

More than three-quarters of China’s LNG production capacity is lying idle this winter because feedstock supply cuts by PetroChina have left plants unable to fully meet booming demand. Experts said cuts will continue every year until the onshore upstream sector can be opened up to more competition.

Operational levels at China’s LNG plants have slumped to a five-year low of 22% in the past three weeks. The decline follows PetroChina’s cut to feedstock supplies as a result of shortages amid surging heating demand and...