(Yicai Global) Dec. 7 -- China's two large state-owned oil and gas companies, China National Petroleum Corporation (CNPC) and China National Offshore Oil Corporation (CNOOC), connected their natural gas pipelines for the first time in Tianjin, North China. The new cooperation between the two giants will increase the daily natural gas supply in the Beijing-Tianjin-Hebei region by 5 million cubic meters.

After the pipeline interconnection, CNOOC's liquefied natural gas (LNG) distribution station, which could only supply gas to Tianjin before this cooperation, can now sell natural gas to CNPC, thereby entering China National Petrol Corporation's pipeline network for the Beijing-Tianjin-Hebei region. This can meet the demand of almost one million households for daily heating and effectively address the issue of shortage in clean heating in winter, Cnr.cn reported yesterday.

China's natural gas supply and demand situation is still grim this winter, said a CNPC official. There is a huge shortage of resources. CNPC faces a total market demand of 81.3 billion cubic meters, but it can only supply 76.5 billion cubic meters.

Domestic productivity is unlikely to be substantially increased in the short term, and the prices of imported gas from Central Asia have gone up. Experts said the only solution now is to increase the import of LNG, but it is still difficult for supply to keep up with demand.

Last year, CNOOC and CNPC reached strategic cooperation in accordance with the requirements of the National Development and Reform Commission (NDRC), and they implemented a natural gas pipeline connection project, which successfully passed acceptance check on Nov. 25.