PetroChina, the country’s top gas producer, has curbed supplies of the fuel to some industrial users in northern and western regions, in the first sign of emerging tightness only two months after China experienced one of its worst winter gas crunches.
To prevent another around of winter shortages, state-run PetroChina started from early May limiting gas supplies and hiking prices for major customers, including city gas distributors and inland gas liquefaction plants in some western provinces, four sources briefed on the matter said.
They declined to be identified as they are not authorized to speak to the media.
“Suppliers are managing the increases in demand, so that they won’t be caught up in a serious supply crunch later in the year,” said Chen Zhu, managing director of consultancy SIA Energy.
China’s natural gas consumption rose almost 14 percent in the first four months of the year to 71.1 million tonnes, according to Reuters calculations based on official data.
That led to a surge in spot liquefied natural gas (LNG) imports in recent weeks and has lifted prices to a two-month high of $8.7 per million British thermal unit.
The expansion in demand, driven by an extension of Beijing’s gasification drive and an improving economy, exceeds a 10-percent annual growth forecast by state energy giant CNPC early this year.
Source: Reuters
