China CNPC to build 10 natural gas storage facilities

If it was not apparent how important China thinks natural gas is to that countries energy needs, consider that China CNPC, China’s  top oil and gas producer, plans to build 10 gas storage facilities over the next five years.

China’s infrastructure for natural gas storage and distribution is simply not adequate to meet demand fluctuations due to weather, or future demand requirements. (See HRN: China faces intensified gas shortages). China’s natural gas supply fell severely short of demand this winter, causing many problems for the transportation and residential sectors. The National Energy Administration committed to make the necessary investments to avoid future problems, and these 10 facilities are part of that commitment. The 10 storage facilities are intended to avoid future natural gas shortages, holding up to 22.4 billion cubic metres of natural gas which is about 20% of China’s total natural gas demand last year.

And while these storage facilities are a key components to China’s plans to avoid natural gas shortages, it also is an indication of the growing importance China is placing on natural gas in their overall energy mix. China understands how to manage and prepare for future energy demands better then any other country in the world and takes a long term planning approach to everything they do.

Do not be surprised if China joins Korea and starts to make key investments into massive gas reserves locked in shale gas in B.C. A strong connection with the China would make this a natural fit.

Reuters: CNCP to build 10 gas storage facilities