China becomes world’s second largest LNG importer, behind Japan

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China surpassed South Korea to turn a world’s second-largest importer of liquefied healthy gas (LNG) in 2017, according to information from IHS Markit and executive Chinese supervision statistics. Chinese imports of LNG averaged 5 billion cubic feet per day (Bcf/d) in 2017, exceeded usually by Japanese imports of 11 Bcf/d. Imports of LNG by China, driven by supervision policies designed to revoke atmosphere pollution, augmenting by 1.6 Bcf/d (46%) in 2017, with monthly imports reaching 7.8 Bcf/d in December.

Image credit: GIIGNL LNG reports (2013-16), Global Trade Tracker export-import trade statistics (2017), and IHS Markit.

China’s imports of healthy gas have grown to accommodate augmenting domestic healthy gas consumption, that has been essentially driven by environmental policies to transition divided from coal-fired electricity generation. The Chinese supervision has also implemented policies to modify several million residential households in China’s northern provinces, that traditionally rest on spark heating in a winter, to use healthy gas-fired boilers instead.

Natural gas storage ability in China is comparatively limited, estimated during usually 3% of sum healthy gas consumption. China’s anniversary rise direct is met essentially by healthy gas imports, possibly by tube from Central Asia or by shipments of LNG. Despite increases in China’s domestic prolongation and in tube imports in 2017, healthy gas shortages in northern China led to record levels of LNG imports during a 2017 winter. Overall, healthy gas imports accounted for 40% of China’s 2017 healthy gas supply, and LNG done adult some-more than half of those imports.

Image credit: IHS Markit, China National Development and Reform Commission, China Customs, National Bureau of Statistics.

China has 17 LNG import terminals during 14 ports along a coastline, with a total regasification ability of 7.4 Bcf/d. Annual function rates during LNG import terminals averaged about 50% from 2013 by 2016, though a rate augmenting to 69% in 2017. Colder-than-normal winter continue augmenting healthy gas direct and led LNG import terminals in a northern and executive coastal regions of China to surpass nameplate ability by 30% and 20%, respectively, in Dec 2017.

EIA expects healthy gas expenditure in China to continue to increase—driven by economics and environmental policies—and imports and augmenting domestic prolongation will be used to accommodate flourishing demand. China’s LNG import ability is approaching to strech 11.2 Bcf/d by 2021, once ability expansions during existent terminals and new terminals now underneath construction are completed. EIA also expects China’s imports of healthy gas by tube to increase, generally as a Power of Siberia tube from Russia comes online by a finish of 2019.

Illustration by China Customs trade statistics, IHS Markit.

U.S. LNG exports to China augmenting significantly final year, from 17.2 Bcf in 2016 to 103 Bcf in 2017. China accounted for scarcely 15% of U.S. LNG exports in 2017, behind usually Mexico and South Korea. In Nov 2017, a United States and China sealed several rough agreements for U.S. LNG exports to China, including exports from Sabine Pass on a Gulf Coast of Louisiana, a entirely authorized Delfin LNG offshore trade plan off Louisiana’s coast, and a due Alaska LNG project. In Feb 2018, Cheniere Energy and a China National Petroleum Corporation signed two long-term contracts for LNG from Sabine Pass and new LNG trickery underneath construction nearby Corpus Christi, Texas.

Source: EIA

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