Page 8 - AsianOil Week 02 2021

AsianOil EAST ASIA AsianOil

China’s oil, gas imports climb in 2020

CHINA’S crude oil and natural gas imports both
climbed to record highs in 2020, despite the
coronavirus (COVID-19) pandemic severely
depressing economic activity.
Oil deliveries surged by 7.3% year on year to
a record 542.37mn tonnes (10.89mn barrels per
day), as Chinese buyers raced to snap up cheap
cargoes of the fuel following the price collapse in
March 2020.
Imports began to cool off in the second half of
the year after peaking at 12.99mn bpd in June, as the
backlog of shipments was cleared and the private
downstream sector ran out of import quotas. The
country received just 38.47mn tonnes (9.1mn bpd) As yet, there have been no reports to suggest
in December 2020, according to General Adminis- a repeat of past rationing efforts, where indus-
tration of Customs (GAC) data released on January trial and commercial demand was sacrificed in
14, down 15% from 10.82mn bpd in December 2019 favour of residential needs.
and 11.08mn bpd in November 2020. However, getting supplies of the fuel out to
Imports of piped natural gas as well as liquefied consumers has not been without its challenges.
natural gas (LNG), meanwhile, increased by 5.3% Wood Mackenzie noted on January 13 that spot
y/y to 101.66mn tonnes. With the country scram- prices of trucked LNG in China had been highly
bling to meet soaring demand amid plummeting volatile in December 2020.
winter temperatures, a new monthly record of Wood Mackenzie research director Miaoru
11.23mn tonnes was set in December 2020. Huang said: “The price spike came as a huge
Reuters cited shiptracking data as showing surprise to market participants. Before winter
that LNG imports in December 2020 set a new started, [the] consensus was that there would
high of more than 9mn tonnes. be a well-supplied market with subdued
Despite the spike in demand, caused by sev- trucked LNG prices, as was the case for most
eral spells of sub-zero temperatures across the of 2020. As a result, trucked LNG supply had
country, China appears to have avoided a repeat been tightened to make room for piped gas in
of historic gas shortages that left households the current winter season.”
without heating. The consultancy cited logistical issues –
In November, top economic planner the such as frozen roads and a November 2020
National Development and Reform Commis- fire that knocked the Beihai LNG terminal in
sion (NDRC) said the country’s gas supplies Guangxi Province out of action until early last
would be enough to meet peak winter demand, month – coupled with the country’s strong
after the commission had encouraged the coun- economic recovery and renewed pursuit of
try’s state majors to boost both domestic gas pro- coal-to-gas switching as being behind the
duction and imports. price volatility.™

KOGAS launches new hydrogen unit

PROJECTS & SOUTH Korea’s state-owned KOGAS said on charging stations. By doing this it will finally
COMPANIES January 11 that it had launched a new hydro- build an entire value chain from hydrogen pro-
gen strategy as it aims to decarbonise its gas duction to supply.
operations. KOGAS will also focus on energy infrastruc-
KOGAS has launched a new hydrogen busi- ture projects with know-how from LNG-based
ness headquarters to pave the way for the estab- combined cycle power generation projects in
lishment of an entire hydrogen value chain, part order to tap into emerging energy markets of
of a wider reorganisation of its activities. Southeast Asian countries such as Vietnam and
The utility’s blueprint involves establishing an Myanmar.
M&A Department to secure core hydrogen and KOGAS has decided to set up the ASEAN
carbon-neutral technology through mergers and Vietnam Office for the Gas to Power Project
acquisitions at home and abroad. (GTP), an LNG production base and power
In addition, it will also set up an investment plant export project. It is currently negotiating
department to manage investment in green with various countries, including Vietnam and
hydrogen production and hydrogen fusion Thailand.

P8 www. NEWSBASE .com Week 02 14•January•2021