(Yicai Global) Dec. 11 -- China National Offshore Oil Corporation Ltd. [HKG:0883] (CNOOC) has purchased over one million tons of liquid natural gas (LNG) ahead of a rise in spot prices to ensure a stable supply in the country this winter.
The firm is also progressing with the interconnection of natural gas pipelines in Tianjin, Guangdong and Zhejiang, an effort to provide an additional 12 million cubic meters of natural gas daily, CNR News reported yesterday.
Gas consumption in China expanded by 20 percent annually in the first ten months of the year. Usage in northern areas has continued to rise following the onset of winter. In response, National Development and Reform Commission (NDRC), the country's top macroeconomic planner, called on China National Petroleum Corporation (CNPC), China Petroleum & Chemical Corp. (Sinopec) [SHA:600028] and CNOOC to increase production and supplies.
"Policies addressing smog and the transition from coal to gas have caused a surge in demand for gas over the last year, resulting in a serious shortage," said China Energy Research Society's vice-chair Zhou Dadi.