Foreign Capital Accelerates the Exploration of China’s Natural Gas Market

With the end of heating season in the north, the domestic natural gas market has entered the traditional off-season of consumption, but the figure of foreign capital in the market is more active, liquefied natural gas has become the focus of attention and competition of many foreign-funded enterprises.

Relevant leaders of Shanghai Petroleum and Natural Gas Trading Center told reporters at the 19th International Liquefied Natural Gas Conference held here that the number of international energy enterprises visiting the trading center this year increased significantly compared with the same period last year. The cooperation between foreign-funded enterprises and Chinese enterprises has expanded from several major state-owned oil and gas companies to domestic private enterprises, and the content of cooperation has also changed from simple resources trade to production. The downstream extension of the industry chain.

Reporters learned from the conference site that on the one hand, many foreign-funded enterprises hope to have a deeper understanding of China’s oil and gas market reform policy and the process of opening up; on the other hand, they are actively looking for a platform to connect the upstream and downstream of the market, and to reach a wider range of private, small and medium-sized gas enterprises in China.

Saad Sherida Alkabi, Minister of Energy Affairs of the State of Qatar, said that China was one of the central markets for increasing global demand for liquefied natural gas, and Qatar hoped to have more cooperation with China in the future. Qatar has been upgrading its liquefied natural gas production capacity to meet the needs of the future market.

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Data show that in 2018, China’s apparent consumption of natural gas exceeded 280 billion cubic meters, becoming the world’s largest importer of natural gas and the second largest importer of liquefied natural gas. The import of liquefied natural gas exceeded 53 million tons, accounting for 60% of the total import of natural gas.

“Liquefied natural gas has gradually become one of the most active forms of natural gas supply by virtue of its advantages of convenient transportation, flexibility, safety and efficiency.” Yang Hua, chairman of China Ocean Oil Group Co., Ltd., said.

Among the major liquefied natural gas enterprises in China, China offshore oil imported 26.42 million tons of liquefied natural gas in 2018, and PetroChina imported more than 15 million tons of liquefied natural gas in the same period.

At present, Hanas Group, a private enterprise, has set up a liquefied natural gas purchasing and trading company in Singapore. “We cooperate with major LNG suppliers around the world. In the past, cooperation with foreign-funded enterprises was mostly in the field of liquefied natural gas procurement. Now we are also developing overseas LNG supply markets, focusing on Southeast Asia, the Middle East and Africa. Christopher Marley, general manager of Hanas Liquefied Natural Gas (Singapore) Co., Ltd.


In addition, the company recently signed a 10-year long-term purchase and sale agreement with Guanghui International Natural Gas Trading Co., Ltd. to supply 700,000 tons of liquefied natural gas annually. Laurent Ville, Senior Vice President of Daudal Natural Gas Business, said Guanghui International Natural Gas Co., Ltd. is developing strongly in the Chinese market, and the new supply contract will further enhance Daudal’s influence in the Chinese market.

Tony Yatt, chief executive of Nigeria Liquefied Natural Gas Corporation, said that Nigeria Liquefied Natural Gas Company had not directly engaged in business with China at present, and many products were transferred to the Chinese market through buyers. Faced with the fast-growing market, Nigeria Liquefied Natural Gas Corporation is looking for opportunities to directly connect with the Chinese market.

At present, China’s natural gas market is in an important stage of market-oriented reform. In the view of the industry, in the future, the natural gas transportation pipeline network, gas storage and liquefied natural gas receiving station and other infrastructure will gradually be fair and open to the market, and the market pricing mechanism of all sectors of the natural gas industry will continue to improve.

Industry insiders expect that China will gradually form a unified and multi-level new pattern of natural gas market, interact closely with the international market, and expand the breadth and depth of international energy cooperation.