China’s natural gas production saw a 6% increase in the first half of this year compared to the same period last year, driven by efforts from state companies to ramp up domestic output through new field operations.
According to data from China’s National Bureau of Statistics released on Monday, natural gas production in China reached 123.6 billion cubic meters (bcm) from January to June, marking a 6% rise year-over-year. In June alone, production surged by 9.6% compared to June 2023, as reported by Xinhua news agency.
Earlier this year, Sinopec, a major state energy firm, commenced production at a new natural gas field in Sichuan province, boasting an annual capacity of approximately 2 billion cubic meters. This field, with reserves estimated around 100 billion cubic meters, significantly contributes to China’s domestic natural gas supply, Sinopec noted in March.
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In addition to bolstering domestic production, China has increased its natural gas imports this year to meet growing demand, taking advantage of lower LNG prices compared to the past two years. Imports of natural gas, including via pipelines and LNG shipments, rose by 14.3% in the first half of 2024 compared to the same period last year. Despite higher import volumes, China’s import expenditure for the first half decreased by 0.8% to $31.7 billion, thanks to lower LNG prices early in the year compared to a year ago.
China notably boosted LNG imports from January to April, aiming to stockpile fuel ahead of the summer season amidst international prices that were half of those seen in the first four months of 2024 compared to the previous year. During this period, Chinese natural gas imports were estimated to have risen by 21% year-on-year.
PetroChina, another major state-owned energy enterprise, indicated in May that China may surpass its record-high LNG imports of 2021 this year, driven by increased demand from industrial and commercial sectors for this highly sought-after fuel.
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