China City Natural Gas Investment LNG plant shut; halts spot sales

07 December 2012 08:51  [Source: ICIS news]

SINGAPORE (ICIS)--China City Natural Gas Investment has suspended spot sales of  liquefied natural gas (LNG) from its shut 450,000 cubic metre/day Xi’ning plant in Qinghai province, a company source said on Friday.

The LNG plant was taken off line early this month because of gas supply shortage, the source said.

Household demand for heating purposes becomes top priority for natural gas utilization in China during the winter season, resulting in reduction of supply to industrial users.

The LNG plant’s restart schedule is uncertain, the source said, adding that it is unlikely to resume production in December.

The company has informed its customers of the halt in spot sales, with a plan to buy LNG from other suppliers to fulfill its contractual commitments, the source said.

The plant mainly consumes natural gas supplied from PetroChina’s Sebei gasfield, which mostly supplies to the Beijing municipality, industry sources said.

Gas output from this field has also been declining, they said.

Demand for Sebei gas is currently exceeding supply by about 8.8 million cubic metres/day, they said.

Other LNG plants that feed on natural gas supply from Sebei gasfield, such as Gansu Xinlianhai Natural Gas and Yongjing Sanxia Natural Gas have also suspended production, market sources said.

By: Jane Han

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