Page 7 - AsianOil Week 50 2022

AsianOil EAST CHINA AsianOil

Chinese gas output tops 178.5

bcm during January-October

PERFORMANCE GAS production in China during the Janu- Mongolia Autonomous Region. During 2022,
ary-October 2022 period totalled 178.5bn cubic more than 1,200 new gas wells have been devel-
It marks a 6% increase metres, an increase of 6% year on year over oped in the field, boosting daily output to 16.25
year on year. the same period last year, according to China’s mcm per day. Production for the current year is
National Bureau of Statistic, and reported by targeted to reach 30 bcm.
Chinese media. The bureau said gas imports had Meanwhile, Chinese media have reported
declined during the period by 10.4%. that a key section of the Russia-China gas pipe-
Besides deliveries of LNG, China receives line under the Yangtze River has been completed
natural gas by pipeline from Russia and the Cen- after 28 months of construction. The section will
tral Asian countries. allow Russian gas to reach Shanghai and move
State news agency Xinhua reported daily nat- the full operation of the China-Russia east route
ural gas production from the Tarim oilfield, one gas pipeline nearer to completion.
of the main contributors to the west-to-east gas The section is comprised of a 10-km tunnel
transmission system, had increased to 100mn beneath the Yangtze that includes three natural
cubic metres per day. Located in the Xinjiang gas pipelines, each with a diameter of 1.4 metres.
Uyger Autonomous Region, operations at Tarim Under a 30-year agreement signed in 2014
have been ramped up to address the surge in between China National Petroleum Corporation
demand for natural gas, the report said. (CNPC) and Russia’s Gazprom, 38 bcm per year
Xinhua said new output in the field had will be supplied to China beginning in 2024 at an
exceeded 10 mcm per day, adding that total gas estimated total cost of $400bn.
production at Tarim amounted to 30.3 bcm. The entire pipeline project runs some 8,000
Work for more oil and gas production in the km from eastern Russia into China, with the
Tianshan Mountains and Taklimakan Desert Russian section (Power of Siberia) stretching
had also been accelerated, the report said. 3,000 km and the Chinese portion extending
State broadcaster CCTV reported that Chi- some 5,100 km. Parts of the northern sec-
na’s largest gas field, Sulige, had also exceeded tion of the pipeline in China have become
100 mcm per day. The field is located in the Inner operational.™

Chinese yards secure record LNG carrier orders

PERFORMANCE CHINESE shipbuilders are gaining from record five times more than the orders they secured in
orders for LNG tankers, as South Korea’s yards 2021, according to Clarksons Research. By last
South Korean yards have become fully booked. month, Chinese yards had expanded their LNG
have their hands full. Three Chinese yards, only one of which has tanker order book to 66 from 21, giving them
had experience constructing large LNG tankers, a 21% share of global orders. In comparison,
have secured almost 30% of this year’s record Chinese yards have constructed only 9% of the
orders for 163 new LNG carriers, according to global LNG carrier fleet working today, accord-
Reuters. Demand for the tankers have soared as a ing to Clarksons.
result of Europe scrambling to secure LNG sup- Shanghai-based Hudong-Zhonghua Ship-
ply to replace lost Russian deliveries. building is the only Chinese yard that has com-
According to Reuters LNG tanker orders pleted large LNG carriers, having built dozens
at Chinese yards have tripled since Moscow since 2008. It has secured 26 orders from local
launched its invasion of Ukraine. South Korean owners, versus nine over the last two years, along
yards – the dominant players in the market – with fellow Chinese yards China State Ship-
have simply ran out of space to take more orders building Corporation units, Dalian Shipbuild-
after securing massive deals last year for tankers ing Industry and Jiangnan Shipyard (Group),
to serve Qatar’s expansion project at the North according to Clarksons and industrial officials,
Field. Reuters report.
"As more Chinese gas traders engage local Two more yards – China Merchants Heavy
shipyards, they will be forced to climb the Industry (CMHI) and Yangzijiang Shipbuilding
learning curve and eventually grow the whole YAZG.SI – secured certification this year to con-
industry," Li Yao, founder of Beijing-based con- struct large LNG tankers, and has received inter-
sultancy SIA Energy, told Reuters. est from both domestic and foreign shipowners.
Chinese shipyards this year have been hired to LNG carriers typically take up to 30 months to
build 45 LNG tankers at a cost of $9.8bn, which is construct. ™

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