China National Petroleum Corp (CNPC) is to expand its fleet of gas carriers to enhance its role as a global gas trader
CNPC’s trading arm, PetroChina International Co, plans to quadruple its LNG tanker fleet by the end of the decade according to public comments made in Beijing by the firm’s deputy general manager, Wang Haiyan.
The state-owned firm has a dominant position in China’s domestic gas market and is the nation’s biggest natural gas supplier. Now it is eyeing the international market, a prospective move that comes on the heels of PetroChina posting record annual profits in March.
An 8% jump in net profit saw the company’s profits soar to ¥161.2Bn (US$22.3Bn), a figure PetroChina called a “historical high.”
The company currently has six ships. The additions would include those owned by PetroChina and others chartered on long-term contracts.
China is also the world’s biggest LNG buyer, but a drop in domestic consumption at the height of the Covid-19 pandemic forced importers to shift their focus to other markets.
Mr Haiyan said PetroChina resold 12M tonnes of LNG to over 20 countries in 2023.
With more major LNG projects set to come online in the second half of this decade gas supply pressures are easing as China’s domestic demand rebounds.
According to Chinese authorities, the nation has increased domestic gas production by about 7M tonnes for seven years in a row now, reaching 164M tonnes in 2023.
Russian supplies via overland pipeline are also growing apace, creating more options for firms to trade gas - The Power of Siberia project is on track to increase its delivery to 21M tonnes in 2024, up from 16M tonnes last year, and is expected to reach its full capacity of 27M tonnes by 2025.
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