China increased imports of natural gas by pipe in July compared to June by 1.5 times

China increased imports of natural gas by pipe in July compared to June by 1.5 times

China increased imports of natural gas by pipe in July compared to June by 1.5 times

The largest importer of natural gas – China – increased imports of natural gas through pipelines in July compared to June by one and a half times. Pipeline gas supplies to China in July 2020 jumped to 4.449 billion cubic meters. m compared to 3.027 billion cubic meters. m in June this year. Throughout history, China received more volume through gas pipelines only in March 2018 (and even then, slightly more – 4.489 billion cubic meters). An 8% growth in July 2020 is also observed by the dock July 2019 (4.124 billion cubic meters).

A sharp increase in supplies took place after the price cut under long-term contracts with blue fuel suppliers. The price indexed by oil quotes changes with them on a quarterly basis, and new conditions began to operate in July. According to the data of the Chinese customs, the average price of pipeline supplies in July fell to $ 199 per thousand cubic meters from $ 230 in the second quarter.

The price with pipeline gas suppliers is expected to decline even further in the fourth quarter, further strengthening the attractiveness of pipeline supplies for the Chinese market.

China imports gas via pipelines from Turkmenistan, Uzbekistan, Kazakhstan, Myanmar, as well as from Gazprom (MCX: GAZP) from Russia. It would be possible to achieve such a large result (4.449 billion cubic meters) if all suppliers would return to the level of supplies before the pandemic (for example, to the January levels). At the same time, it is known that, for example, Gazprom in July increased supplies to about 370 million cubic meters. m from 306 million cubic meters. m in June. It would have been impossible to achieve such a level of supplies without the restoration of the volume of supplies from Kazakhstan, which in June almost completely stopped supplies (this could be due to summer preventive maintenance).

Liquefied natural gas (LNG) supplies in July 2020 increased to 5.96 million tons after 5.034 million tons in June and 5.122 million tons in July 2019. The average price of LNG supplies fell to $ 206 per thousand cubic meters. m from $ 261 per thousand cubic meters. m in June.

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