Developing LNG Industry to Deal with 5 Relations
China's LNG industry must effectively manage five key relationships, according to the latest insights shared at the China International Forum on LNG Industry Development. Experts participating in the event emphasized that during the "11th Five-Year Plan" period, China's economic growth will continue to drive up natural gas demand, leading to potential supply-demand imbalances in the LNG market. To address this challenge, the development of the LNG sector must focus on several critical areas.
First, there is a need to balance domestic and international land, sea, and air resources. This involves strengthening the exploration and development of domestic offshore gas fields and importing pipeline natural gas to become the main source of supply. At the same time, foreign LNG imports should be utilized to alleviate energy shortages in coastal regions, complementing pipeline gas to build a comprehensive national gas network.
Second, the coordination between LNG receiving terminals and upstream liquefaction facilities is crucial. Synchronization between these two sectors can help secure favorable contract prices and improve commercial viability.
Third, the relationship with downstream users requires more attention. Expanding the downstream market and optimizing gas usage will ensure efficient utilization of resources.
Fourth, the balance between long-term and spot contracts must be carefully managed. Long-term contracts are essential for project financing, while short-term and spot supplies can meet transitional or emergency needs.
Lastly, the choice of regional resources should be strategically considered to ensure stability and cost-effectiveness in the supply chain.
China has increasingly focused on developing its LNG industry, with several regions currently planning or implementing projects. These include Guangdong, Fujian, Zhejiang, Shanghai, Jiangsu, Shandong, and Liaoning. These projects aim to create a coastal LNG receiving and transmission network. While some, like those in Guangdong and Fujian, have entered the implementation phase, most are still in the preparatory stage.
Inland, China has already built over 40 LNG satellite stations, one peak-shaving station, and two LNG plants. Four more LNG plants are under construction. The planned storage capacity of LNG receiving terminals could reach up to 18 million tons per year by the end of the plan period.
According to the "Eleventh Five-Year Plan," China's domestic LNG production capacity is expected to reach 90 billion cubic meters by 2010 and 240 billion cubic meters by 2020. This highlights the rapid growth and strategic importance of the LNG industry in China’s energy landscape.
Dense Phase Conveyor,Dense Phase Mini Pot Conveyor,Dense Phase Conveying System,Dense Phase Pneumatic Conveyor
Quantum Conveying Systems Yangzhou Co.,Ltd. , https://www.quantum-sino.com