Developing LNG Industry to Deal with 5 Relations

China's LNG industry needs to handle five relationships. This is the latest information uploaded by the China International Forum on LNG Industry Development.
Participating experts believe that during the "11th Five-Year Plan" period, China's economic development will continue to increase its demand for natural gas, and the LNG market will have a conflict between supply and demand. In this regard, the development of LNG industry must take effective measures to correctly handle the relationship between LNG projects and domestic and foreign land and sea air, the relationship between LNG receiving stations and the production time of upstream liquefaction production lines, the relationship between downstream users, and long-term relationships. The relationship between contracts and spot contracts, the relationship between the choice of resources in different regions, etc.
In relation to the relationship between LNG projects and domestic and foreign land and air, we must strengthen the exploration and development of domestic land offshore and import pipeline natural gas to make it the main channel for the supply of natural gas in China; the introduction of foreign LNG to ease the energy shortage situation in the coastal areas, and the pipeline Natural gas complements each other to form a natural gas pipeline network in China. In the construction of LNG receiving stations, it is necessary to rationalize the deployment according to the national long-term development plan.
In the relationship between the LNG receiving station and the production time of the upstream liquefaction production line, the development of the LNG industry should be synchronized with the upstream liquefaction plant in order to obtain the contract price for better commercial conditions.
In relation to the proportion of downstream users, it is necessary to increase the development of downstream markets and optimize the use of gas structures.
In the relationship between long-term contracts and spot contracts, long-term resource contracts are required to support project construction, and short-term and spot resources are used to meet the transition and emergency needs.
It is understood that China has paid more and more attention to the development of the LNG industry. The regions currently planning and implementing LNG projects include Guangdong, Fujian, Zhejiang, Shanghai, Jiangsu, Shandong, and Liaoning. The projects in these areas will eventually form a coastal LNG receiving and transmission network. Except for projects in Guangdong and Fujian that have entered the formal implementation stage, the remaining projects are mostly in the preparatory stage.
Inland, China has built more than 40 LNG satellite stations, one peak-shaving station and two LNG plants. There are four LNG plants under construction. The total storage capacity of the planned LNG receiving stations can be completed. Up to 18 million tons / year. China's LNG industry is in a period of vigorous development.
According to the “Eleventh Five-Year Plan”, the domestic LNG production capacity will reach 90 billion cubic meters in 2010 and 240 billion cubic meters by 2020.

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