Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



China's two big oil majors urge tax breaks for building gas storage and imports

BEIJING,  (Reuters)- Top officials from China's two largest oil and gas producers have urged the government to offer tax breaks for the building of gas storage facilities and importing liquefied natural gas (LNG) to help avoid anothergas crunch in the winter ahead.

Sinopec Vice President Ma Yongsheng said the central government should subsidise the construction of undergroundgas storage, LNG tanks and other facilities.

China National Petroleum Corp (CNPC) President Wang Yilin urged the government to refund value added tax on LNG imports to lower gas costs for consumers.

Members of parliament and the Chinese People's Political Consultative Conference, the Communist Party's largely ceremonial advisory body, are encouraged to submit suggestions for future legislation during the current Parliament session.

Their chances of becoming legislation are minimal, but they can form part of future laws.

The proposals from Sinopec and CNPC come as the nation looks for ways to increase storage capacity for natural gas to avoid a repeat of this past winter's heating crisis.

Millions of households in northern China switched from using coal to natural gas for heating ahead of this past winter, leading to sky-rocketing gas consumption as well shortages across many regions.

The fuel shortages over the last three or four months deepened China's worries over whether it can secure enough gasand LNG supplies in winters ahead.

CNPC's Wang said China's gas demand will grow 15 to 16 percent in 2018 and supplies will continue to be tight, according to a transcript of his speech to a parliament meeting session published in CNPC's official newspaper.

Sinopec's Kong Fanqun, who heads the Shengli Oil field said a lack of storage facilities also contributed to China's gasshortages this winter, according to a transcript of his speech sent to Reuters by the Sinopec Group.

The country needs an additional 50 billion cubic metres (bcm) of storage facilities by 2020 to meet its own demand, Kong said. That is five times the size of China's current gas storage facilities.

Kong asked the government to give gas producers subsidies as well tax breaks to build and operate gas storage facilities.

Both Sinopec and CNPC officials also proposed removing resource taxes on the development of shale gas, coalbed methane, high sulphur gas and tight gas reserves.

(Reporting by Meng Meng and Aizhu Chen; Editing by Tom Hogue)


Copyright © 2018. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment
-Adrienne Blume
As discussed in the HPI Market Data 2019 report, published in November by Gas Processing & LNG’s sister publication, Hydrocarbon Processing, rising propane and ethane supplies in the US have been enabled by greater production of shale gas.
Industry Trends: Norway targets global LNG market
-Eugene Gerden
Norway aims to become a leading player in the global LNG market during the next several years through the establishment of new, large-scale LNG terminals.
Regional Focus: Challenges of scaling up Africa’s LNG production
-Shem Oirere
Several gas projects are underway in Africa, but they continue to be constrained by inadequate infrastructure, slow finance mobilization, lack of security and uncertainty over hydrocarbon regulations that are casting doubt on the outcome of the continent’s drive to meet its anticipated 128% gas demand increase by 2040.


GasPro 2.0: A Webcast Symposium

Register Now

The global LNG industry is becoming increasingly interconnected as grassroots export projects get off the ground. Another technology route for processing gas into fuels—GTL—is attracting renewed attention due to improving economics. Small-scale solutions for both LNG and GTL are at the forefront of new technological developments, while major projects using more conventional technologies continue to start up around the world.

During this webcast, we will focus on LNG, GTL, gas processing technology developments and deployments, operations, small-scale solutions, transportation, trading, distribution, safety, regulatory affairs, business analysis and more.

October 25, 2018 08:30 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2018 Gulf Publishing Holdings LLC.