Low-cost coal spares China from an impending gas crisis

Low-cost coal spares China from an impending gas crisis
Low-cost coal spares China from an impending gas crisis

China is seeking to avoid a crisis in gas supplies this year, by meeting the increased demand for fuel through low-cost coal, according to a report prepared by researchers from China’s Sinopec Petroleum and Chemical Company and BSC. Energy Consulting yesterday.
The report noted that the weak export outlook slows down demand from the industry, and the estimated full-year demand of 371.3 bcm is lower than the available supply of 387.5 bcm.
According to “Bloomberg” news agency, industrial and electrical demand may remain in a downward trend if gas prices remain high amid abundant coal supplies.
The addition of 5.6 billion cubic meters of gas supplies from Russia and other LNG purchases through newly signed long-term contracts could cause total imports to increase by 15 percent year-on-year from a year earlier. Total imports are estimated at 170 billion cubic metres, or 44 percent of the total supply.
On the other hand, Kazak Gas Company and China National Petroleum Corporation signed a contract to continue “cooperation in the field of natural gas supply and geological exploration.”
The Kazakh state-run company said on its website that the agreement “also lays the foundation for the construction of the second series of the Benyu-Bozoy-Shymkent gas pipeline”.
Last year, the government planned to conduct a feasibility study for the construction of a second pipeline of 10 billion cubic meters along the Benyu-Bozoy-Shymkent route.
Separately, Kazakh oil and gas company Kaz Monay Gas said on its website that it and China National Petroleum Corporation signed an agreement to expand the “strategic partnership”, as they plan to expand cooperation in crude oil exploration and processing and study the possibility of increasing oil sales through the Kazakhstan-China pipeline.