CNPC's 2017 Gas Output Hits Record
Chinese state-owned explorer China National Petroleum Corporation’s (CNPC) natural gas production in 2017 touched a record of 103bn m3, up over 5% year on year, it said February 8.
The company accounted for more than 70% of China’s natural gas production last year. This was the first time in CNPC’s history that its annual gas output crossed the 100bn m3 mark.
The 103bn m3 of natural gas could replace 133mn metric tons of coal, which CNPC said could result in a cut of 142mn metric tons of carbon dioxide emissions and 2.2mn metric tons of sulfur dioxide emissions.
Natural gas now accounts for 46.4% of the company’s overall production and has become a new economic growth point, CNPC said.
Chinese explorers have ramped up production as Chinese domestic gas demand surged last year as government, in an effort to control air pollution, pushed households and industries to switch from coal to natural gas.
Official Chinese government statistics released three weeks ago showed that, for full year 2017, China's natural gas production was 147.42bn m3, up 8.5% year on year, while the nation's December 2017 production of 13.61bn m3 was the highest for 36 months.
Chinese LNG import prices have risen strongly, in line with strong Chinese and East Asian demand generally, this winter. However energy demand has also translated into higher coal prices too. Consultancy Wood Mackenzie said February 9 it had heard that Qinhuangdao port started to cap thermal coal prices for free-on-board 5500 kcal/kg coal at renminbi 750/t ($119/t) from February 5, following a request from China's National Development and Reform Commission. It said colder-than-normal weather in January had resulted in strong thermal coal demand and a subsequent increase in prices, to a reported recent peak of renminbi 780/t recently. WoodMac said the price cap will have an impact from now until mid-March.