Asia Pacific

Sinopec ups gas supply

China’s Sinopec Corp plans to increase its commercial natural gas supplies to domestic users from November through March to 8.4 billion cubic metres (bcm), up 11 per cent from last year, to meet strong winter demand.

China faced a severe gas shortage last year as consumption peaked during the winter months in the world’s top energy user, compelling it to ration and suspend supply to some industries in order to guarantee sufficient stock for home and transport use.

This year, the state-owned energy giant Sinopec expects its gas output to climb 8 per cent on year to 20 bcm, it said in a statement, helped by supplies from main domestic conventional fields such as Zhongyuan and Sichuan as well as the newly started shale gas project at Fuling in Chongqing.

Sinopec’s increased output has partly been aided by China’s gas price reform that aims to hike domestic prices of cleaner-burning fuel to bring them closer to the cost of imports, to encourage higher domestic production.

Chinese energy use peaks in winter, with power demand soaring and urban heating systems switching on throughout northern China, putting pressure on the country’s coal and natural gas supplies, as well as its transportation network.

To avoid a shortage like last year, China will boost its natural gas imports during winter, the central government’s National Development and Reform Commission (NDRC) said in November.