The LNG business in China experienced remarkable growth in the early 2010s and environmental treatment has been one of the driving forces. Now that there are local reports that the environment has already improved in many major cities, however, and oil prices have dropped to a dramatically low level, will the use of natural gas still be emphasised?
According to a report published by the Economy and Technical Research Institute of the China National Petroleum Corporation, named Report on the Overseas and Domestic Development of the Oil and Gas Industry in 2015, it is estimated that the consumption of primary energy in China in 2015 was 4.24 billion tonnes of standard coal, with an acceleration of -0.5%, for the first time in 30 years. The consumption of natural gas accounts for 6.4% in the energy mix, with an estimated apparent consumption of 191 billion cubic metres, an increase of 3.7% but a record low for the past 10 years. Overall imports of LNG in 2015 also decreased by about 2%, with imports from spot markets plummeting 50%.
As of June 2016, there are now 12 LNG receiving terminals in operation after a three million tonnes LNG receiving terminal, equivalent to four billion cubic metres of natural gas, was officially put on line in Beihai of Guangxi province on 19th April (2016), when the first shipment from Australia reached the terminal. The terminal is operated by China Petrochemical Corporation (Sinopec) and the company has signed a 20-year contract with APLNG of Australia to secure stable supply.
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