Sinopec says it has secured 10% more gas for winter than a year earlier
SINGAPORE, Nov 1 (Reuters) -China's Sinopec Corp has secured natural gas supplies for the winter heating season at levels 9.7% higher than a year earlier by stepping up domestic production and spot cargo imports, it said on Friday.
The state oil and gas major is raising output to record levels at key domestic fields such as Puguang and Yuanba, both in the southwestern Sichuan basin, by accelerating drilling new wells as well as arresting declines at ageing ones, the company said in a statement.
Yuanba field alone, for instance, currently pumps 13% above year-ago rates, Sinopec said, without providing an outright production figure.
On imports, the company said it "proactively" secured spot imports of liquefied natural gas (LNG) - super-chilled gas shipped in specialized tankers - and "optimized" delivery schedules of LNG shipments under long-term contracts.
Sinopec also aims to raise LNG inventory levels at key receiving andre-gasification terminals such as Qingdao and Tianjin to above 80% of their tank spaceahead of the winter heatingseason, while raising storage at underground caverns at record rates, the firm said.
North China's winter heating season typically stretches between mid-November through mid-March.
China's gas demand has enjoyed healthy growth so far this year thanks to robust domestic production and higher LNG imports aided by lower purchasing costs.
Apparent natural gas demand rose 9.9% on the year to 318.4 billion cubic meters, the National Development and Reform Commission has said.
Reporting by Chen Aizhu; Editing by Janane Venkatraman
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