China’s state-owned National Oil and Gas Pipeline Group (PipeChina), is now offering third party access to spare capacity at its LNG terminals, natural gas pipeline network and storage facilities, and access to its crude oil and refined product pipelines, according to reports.
ICIS reports that PipeChina has published many of the associated tariffs for access in November and December 2020. Firms wishing to access PipeChina’s facilities must register as a shipper before 20 October. Argus Media reports that the third party access is being offered as part of efforts to improve operational transparency.
PipeChina was set up in December 2019, to merge the distribution assets of China National Offshore Oil Corporation (CNOOC), China National Petroleum Corporation (CNPC) and Sinopec, and in July 2020 announced that it had purchased CNY 391.4 billion (€48 billion) worth of assets from PetroChina and Sinopec. The deal closed on 30 September and PipeChina officially began operations on 1 October 2020.
PipeChina has eight LNG import terminals, of which six are operational and two are under construction, including the 20m t/y Longkou Nanshan LNG terminal in Yantai City, Shandong Province, China. Argus Media reports that it will eventually control ten terminals.
The six operational LNG terminals are those in Beihai, Tianjin, Shenzhen Diefu, Fangchenggang, Yuedong and Hainan Yangpu, and ICIS has calculated that 5.8% of their collective 26.1 million tpa capacity is available, as Sinopec, CNOOC and CNPC have retained long-term bookings. At Behai, the 240,000 tonnes of import capacity and 271,000 tonnes of transmission capacity is being sold at an equivalent price of $0.73/MMbtu (€0.62). At Shenzhen Diefu, the 502,000 tonnes of import capacity is being offered at $1.26/MMBtu.
According to Argus Media, the total available receiving capacity will be 1.09 million tonnes in November, the equivalent of 18 60,000 tonne cargoes, and 1.05 million tonnes in December, the equivalent of 17.5 cargoes.
There is also shipping capacity on the Russia-China pipeline and the West-East trunk line, and gas storage available at the 3.27 billion m3 Wen 23 site, the 1.7 billion m3 Jintan facility and the 455 million m3 Liuzhuang unit, according to ICIS.