Gas supply in southwest China tightens on pipeline shutdowns

18 July 2013 10:00  [Source: ICIS news]

SINGAPORE (ICIS)--Natural gas supply via pipelines has tightened in Sichuan province, southwest China, because of gas well and pipeline shutdowns due to extreme weather conditions, local liquefied natural gas (LNG) producers said on Thursday.

Local gas pipelines in Sichuan were shut on the back of safety concerns, after days of torrential rain in the western areas of the province during the first half of July caused damage to a number of gas wells, according to a statement on major producer Sinopec’s website.

As of 14 July, the Chinese oil and gas giant has shut more than 60 gas wells and that has led to a decline of 600,000 cubic metres (cbm) in daily production, the statement said.

To make up for the supply shortfall of piped gas, China Natural Gas Corp has been operating its 1 million cubic metre (mcm)/day LNG plant at Guang’an in eastern Sichuan province at full capacity since 17 July, a company source said.

Around 30% of the plant’s output will be delivered to the western regions where piped gas supply has been affected, the source added.

The impact on piped gas supply to other provinces and regions outside of Sichuan is as yet unknown.

China Natural Gas Corp is a major LNG supplier in southwest China.

By: Ricki Wang
+65 6780 4359

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