Random Update Of China And LNG Imports -- April 24, 2018

When I first started blogging some years ago, I knew nothing about natural gas. I think I know a bit more now, but not much.

So, for me, Irina Slav's article on China and natural gas is fascinating. I believe I have seen all of this data before but it's interesting to see it another context.

The headline: can China combat its natural gas crisis? Well, obviously China will combat its natural gas crisis; it already is.

The real question is whether China will succeed. I assume China will succeed but the story will be interesting to follow. If it does not succeed, it's back to more coal and nuclear. India has already made one choice: India will cut back on plans for some nuclear reactors and rely on coal instead.

China, on the other hand, appears to be taking a different direction. Some data points:

• last year (2017)
• China became the world's second-largest LNG importer
• China imported 38 million tons of LNG
• China increased it LNG imports by 46 percent over the previous year -- 46%!
• Now (2018):
• "China will boost its LNG import capacity to 26 million tons annually over the next six years from the current 9 million tons. China's total of LNG import capacity is 17 million tons." (sic)
• China is turning depleted gas fields into storage facilities 
• China plans to have all 25 underground gas storage sites before this winter (2018 - 2019)
• China plans to increase LNG by 25% this year, up to nearly 50 million tons
• fresh customs figures, March, 2018:
• almost a 65% increase in LNG shipments
• 3.25 million tons (annualized = 39 million tons)
• first quarter this year
• 12 million tons LNG imported
• almost a 60% increase on 1Q17
• lots of infrastructure needed: import terminals; pipelines; storage faclities
• will drive GDP