China’s LNG demand increase

By Sophie Chapman
China is seeing a new demand for liquefied natural (LNG) as the Beijing government call for a reduction of tradition fuels such as coal.

China is seeing a new demand for liquefied natural (LNG) as the Beijing government call for a reduction of tradition fuels such as coal.

This has led to hotels, hospitals, and factories all changing their coal-fired boilers to gas ones, opening up thousands of stand-alone gas customers, according to Reuters.

Huapu Gas is one of many truck companies transforming the new LNG market by delivering super-chilled gas within a 500km radius, based in Tangshan.

“Orders started to shoot up from September. Some are asking for deliveries the very next day,” commented Li Ruipeng, a Manager with Huapu Gas.

SEE ALSO:

China is the second largest importer of LNG in the world, but due to inadequate pipelines and storage tanks, LNG users are desperate for gas supplies, both imported and locally produced, from dealers.

Li Ruipeng dispatches almost 40 trailers per day, with each trailer carries 20 tonnes of LNG.

This quantity has doubled in the past six months, with rates increasing because of fast delivery promises and the ability to avoid government-set prices that are more costly.

“Inflexible pricing for pipeline gas, insufficient grid network and lack of storage facilities ... make trucked LNG a unique business in China,” Managing Director of Consultancy SIA Energy, Chen Zhu, commented.

Share

Featured Articles

UK and US announce energy partnership

The agreement will work towards reducing global dependency on Russian energy exports, stabilising energy markets, and stepping up collaboration

Alfa Laval to supply world’s largest green hydrogen plant

The facility is being built in NEOM, the US$500bn futuristic city being developed in Saudi Arabia

COP27 agrees to climate compensation fund

The deal is said to be a historic first in acknowledging the vast inequities of the climate crisis

North America's natural gas can help mitigate energy crisis

Oil & Gas

COP27: Egypt and Norway to build 100MW green hydrogen plant

Renewable Energy

Renewable energy company Masdar opens office in Saudi Arabia

Renewable Energy