In a move rare, Beijing ordered the importers of gas for the sharing of infrastructure


The chinese authorities have ordered importers of gas State to share their infrastructure in order to avoid a shortage of gas like the one it had known in the winter of 2017.

In December 2017, millions of people in the north of China, were left without heat for lack of gas in the region and the transportation network was far from complete.

Now, this network is much closer to its launch, and Beijing needs to ensure that there will be more shortage. Therefore, China has instructed Sinopec, which has the largest network of LNG import terminals, to share them with their peers, CNOOC and CNPC, reports Bloomberg.

The CNOOC and CNPC must use the facilities of Sinopec not because they don’t have one, but because their own storage is full. The level of supply of LNG stored at the beginning of the year has prompted CNOOC and CNPC to report a case of temporary force majeure on LNG imports.

A recent report from Reuters suggested that the buyers of gas chinese could soon slow down their purchases: a source has told the news agency that 40 to 45 cargoes of LNG to the u.s. for delivery in August could be cancelled, after the same number of cargoes for delivery in July was cancelled earlier. The reason: a recovery of the gas demand is slower than expected, particularly in Asia.

In the midst of changes in the patterns of demand, Beijing is pursuing the reform of the natural gas sector. The three importers of State of gas currently operate 10 LNG import terminals. However, the government has created a new company, called PipeChina, which will manage the terminals as well as the new gas distribution network across the country.

During this time, after the lockout, the imports of LNG have increased again, the importers of chinese taking advantage of prices on the spot market record. Now, with the filling of the storage, this growth could slow down again.

By Irina Slav for

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