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NATGAS: China Raises Gas Storage Ahead of Winter

NATGAS
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China has boosted underground storage of natural gas, amid early preparations for peak winter demand, according to Bloomberg.

  • The Huabei site, serving Beijing, had stores up to 83% of target at 2bcm by the end of August, according to the Shanghai Petroleum and Natural Gas Exchange, and equal to pre winter levels last year with a month of injections still to go. Gas injections in China typically run from April through September.
  • Storage caverns are also getting bigger as old oil wells are repurposed to hold more gas. The Huabei capacity has doubled over the past six years and will be expanded again this winter.
  • China’s largest storage facility at Hutubi in western China and the Dagang facility in Tianjin are at record levels this year after rapid injection rates, according to local media.  
  • Subdued consumption may also have contributed to the building storage due to a slowing economy.
  • Spot LNG imports are most at risk from a well-supplied Chinese market with expensive supplies relative to contact LNG and pipeline supplies. Buyers have put spot purchases on hold after Asian rates jumped in August, according to ENN Energy Holdings last week. 

 

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China has boosted underground storage of natural gas, amid early preparations for peak winter demand, according to Bloomberg.

  • The Huabei site, serving Beijing, had stores up to 83% of target at 2bcm by the end of August, according to the Shanghai Petroleum and Natural Gas Exchange, and equal to pre winter levels last year with a month of injections still to go. Gas injections in China typically run from April through September.
  • Storage caverns are also getting bigger as old oil wells are repurposed to hold more gas. The Huabei capacity has doubled over the past six years and will be expanded again this winter.
  • China’s largest storage facility at Hutubi in western China and the Dagang facility in Tianjin are at record levels this year after rapid injection rates, according to local media.  
  • Subdued consumption may also have contributed to the building storage due to a slowing economy.
  • Spot LNG imports are most at risk from a well-supplied Chinese market with expensive supplies relative to contact LNG and pipeline supplies. Buyers have put spot purchases on hold after Asian rates jumped in August, according to ENN Energy Holdings last week. 

 

Keep reading...Show less