China plans more LNG imports

China plans to import more liquefied natural gas (LNG) to relieve its fuel shortfall, according to a report Sunday by the Xinhua News Agency citing Zhang Guobao, head of the National Energy Administration.

Zhang said that domestic gas companies should seek more long-term LNG contracts to take advantage of a global surplus of the fuel.

The country’s gas companies, including PetroChina and China Petroleum & Chemical, known as Sinopec, have been marking up gas output and imports to ease a supply shortage since January. China imported about 3.5 million metric tons of LNG last year, or about 6 percent of its total demand, Zhang said.

From 2010, China will build more LNG terminals in Guangdong and Shandong provinces, Zhang said. The country plans to speed up construction of natural gas pipelines and storage facilities on the coast, according to the report.

People’s Daily Online