China\`s gas consumption to post first fall in two decades

China's natural gas consumption in 2022 may post the first decline in 20 years amid a struggling economy_ with demand this winter set to rise more modestly than in previous years_ state energy officials said on Thursday.

Total gas demand is likely to fall 1% this year to 363.6 billion cubic metres_ said Li Jianping_ a researcher with China National Offshore Oil Company_ which will mark the first annual decline since at least 2002_ reports Reuters.

Gas consumption this winter is pegged at between 168 to 190 billion cubic metres_ a wide range forecast due to uncertainties over weather conditions and economic recovery_ officials told a seminar hosted by state-backed Chongqing Gas Exchange that is live streamed.

China is set to hand back to Japan this year its title as the world's largest importer of liquefied natural gas as protracted Covid-19 curbs and high import costs hampered demand_ easing the pressure on tight global supplies amid the Ukraine crisis.

While slashing high-priced LNG imports_ companies are set to ramp up domestic production_ fill up gas storage facilities and increase imports of cheaper pipeline gas from Russia and Central Asia.

"Our winter supply policy is stabilizing piped gas imports from Central Asia_ boosting volumes from Russia and increasing domestic production_" said Li Wei_ a gas market executive with top state giant PetroChina .

The firm_ the country's largest gas producer and importer_ has secured 109.5 billion cubic metres of supplies for this winter_ including 59 bcm from domestic fields_ Li said.

Li Wei predicted China's winter gas use at a higher range of 187-190 bcm.

The supply pool of 109.5 bcm - which includes domestic production and imports -- compared with 106.2 bcm the previous winter_ representing a modest increase of 3%_ down from 8% growth recorded in the 2021 winter over 2020.

Zhao Kui_ a gas marketing executive at Sinopec Corp_ said Sinopec is pumping at full capacity from its main fields -- Yuanba and Puguang-- in southwestern Sichuan basin after completing regular maintenance.

Sinopec is also replenishing LNG inventories at two large import terminals in Tianjin and Qingdao with storage levels at 80% or above by mid-November_ Li added.

China has so far established gas storage capacity of 26 bcm_ equivalent to 7% of total demand_ to cope with peak winter heating demand_ said Li Jianping_ the CNOOC researcher.

Companies have also set up contingency plans to cut supplies to the so-called "disreputable users" - mostly industrial and commercial users -- to prioritise residential consumers during cold spells_ officials said.