China Piped Gas Imperils $100 Billion LNG Plans: Energy Markets |
| Bloomberg - Oct 10, 2012 |
China is importing more natural gas by pipeline than sea for the first time, highlighting the risk to planned LNG projects costing at least $100 billion as buyers seek cheaper supplies.
The country, which accounted for almost a quarter of Asia’s gas use last year, increased shipments from Turkmenistan, the provider of almost all its piped supplies, by 55 percent to 9.85 million metric tons in the first eight months of the year, customs data show. Liquefied natural gas purchases from nations including Australia and Qatar advanced 23 percent to 9.08 million tons and cost about 3 percent more than pipeline imports, even before the cost of regasification.
China’s bill for LNG, gas cooled to a liquid and transported by tanker, has surged in the past four years as it feeds its booming economy and cuts reliance on more-polluting coal for power generation. The growing dependence on cheaper supplies by pipeline is threatening the viability of LNG projects planned by companies from Exxon Mobil Corp. to Woodside (WPL) Petroleum Ltd. that are waiting for investment approval, according to CLSA Ltd., a Hong Kong-based broker partly owned by France’s Credit Agricole SA.
Read Full Article from Bloomberg
- Posted: 2012-10-10 13:27:56
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