news flash | chen qingbing: private enterprises should give full play to their advantages to seize opportunities in the lng industry-尊龙最新版

the lng industry is in a golden age of historical opportunity

"the oversupply of the global natural gas market has provided advantages for the domestic resource procurement. in addition, china is actively promoting the construction of a production capacity promotion system. as important clean energy, china's natural gas demand will continue to grow rapidly in the future, so the liquefied natural gas, which is more convenient to be transported and easier to be stored, is in a golden period of development." chen qingbing thought.

it is known that liquefied natural gas (lng) is the liquefied production through the process of being compressed and cooled to its freezing point of -161.5°c, and its volume is reduced to about 1/625 of the same amount of gaseous natural gas. its main component is methane. the lng  is transported by special ships or tankers and re-gasified when in use.

"from the perspective of the global market, the falling demand for natural gas heating, which was affected by the epidemic and the mild winter in the northern hemisphere, and the oversupply of global market have caused international lng spot price to fall to a historical low. china is highly dependent on importing natural gas, so the low lng spot price provides china with the advantage of resource procurement.” chen qingbing said.

"from the perspective of the domestic market, starting from 2014, the state has opened up channels for private enterprises to participate in lng import from the policy level, enabling private enterprises to gain a share of the low-price natural gas import market. besides, during the heating season of china during the 2017 to 2018, there was a shortage of natural gas supply in parts of northern china. the party central committee and the state council made timely decisions and arrangements to promote the construction of a natural gas production, supply, storage and marketing system, which greatly promoted the development of the domestic natural gas industry." he said.

the "thirteenth five-year plan for natural gas development" proposed that by 2020, the proportion of natural gas in primary energy consumption will increase to about 10%. the "energy production and consumption revolution strategy (2016-2030)" proposed that by 2030, natural gas will account for about 15% of china's primary energy consumption.

"as a high-quality, efficient, clean, and low-carbon energy, china's natural gas demand will continue to grow rapidly in the future. compared with traditional natural gas transportation relying on pipelines, lng is more convenient to be transported and easier to be stored. it is estimated that by 2035, the demand for liquefied natural gas will exceed that for pipeline natural gas." chen qingbing said.

give full play to the advantages of private enterprises to promote low-carbon development

chen qingbing served as executives of sinopec's sichuan vinylon plant, cnooc fujian lng co., ltd., royal golden eagle group, cnpc jiangsu lng co., ltd., enn (zhoushan) lng co., ltd., zhejiang junan energy, and other companies. considered as a veteran of the lng industry, chen qingbing joined sinoenergy in february 2020.

"the economic benefits of an lng project mainly depend on the business model and commercial resources. the purchase of upstream resources determines its future economic benefits. the biggest advantage of private enterprises is the purchase of resources. petrochina, sinopec, and cnooc mostly sign long-term contracts on lng purchases. private enterprises can choose to purchase spot for hedging based on market supply and demand, and the final purchase price will be more competitive than the price of petrochina, sinopec, and cnooc." he said.

it is known that, unlike natural gas importing through pipelines, lng import mainly relies on coastal lng receiving stations. lng receiving stations include lng terminals and lng storage tank farms, which unload the lng purchased from overseas to the terminals, and then transport gasified natural gas to users. according to data from the igu prospective industry research institute, as of the end of 2020, the number of lng receiving stations is still 22, the same as in 2019. jiangsu honghai energy co., ltd. currently owns the jiangyin lng storage and distribution station project and the chaozhou min-yue economic cooperation zone lng storage and distribution station project.

"as the first lng distribution center along the yangtze river, the jiangyin lng storage and distribution station project has significant location advantages with a transfer capacity of 2 million tons per year. when the project is completed and put into operation, it will help to promote the construction of lng river-and-sea coordinated transport projects and the development of lng projects on the upper yangtze river. taking advantages of the river-and-sea coordinated transport alliance and sinoenergy's overseas petroleum and gas resource, it will gain greater resource advantages during the gold window period of the international market where supply exceeds demand." chen qingbing said.

"besides, the connection between the jiangyin lng storage and distribution station project and the inland natural gas pipeline network highlights its strong advantages in rapid response capabilities in peak shaving and supply. due to the huge demand in the natural gas market, it has become a supplement of petrochina, sinopec, and cnooc, only the incremental market in the surrounding areas can not be satisfied." chen qingbing said.

it is worth mentioning that the jiangyin lng receiving station project was once difficult to boost due to problems such as bankruptcy of the main construction body, stagnation of external water and power projects, and terminal construction.

however, chen qingbing said that at present, the jiangyin lng storage and distribution station project has completed an investment of 1.5 billion yuan, and the overall project progress is 99% completed. it has entered the final stage. it is expected that the water will be supplied by the end of april, and the power receiving and transmission pipelines will be completed and put into use in june this year. jiangyin municipal government is actively implementing in accordance with the investment promotion agreement on the jiangyin lng supporting terminal and striving to promote the construction of the terminal as soon as possible and promote the project to be put into operation.

chen qingbing showed full confidence in the prospect of the jiangyin lng project which integrated resource advantages, environmental advantages, location advantages, and technical advantages.

the financing difficulty of private enterprises remains unsolved

regarding how to further promote the competitive development of private enterprises in the lng industry from the policy perspective, chen qingbing believes that “under the background of peak carbon dioxide emissions and carbon neutrality, lng projects are conducive to promoting the adjustment of local energy to a low-carbon structure, and it shows significant environmental protection benefits. private enterprises and state-owned key enterprises can achieve coordinated development through complementary advantages. it is recommended that relevant departments provided more support to private enterprises in project approval, and supporting policies, such as more convenient financing channels and more compatible financing interest rates to solve the financing plight of private enterprises."

in addition, in chen qingbing's view, the establishment of the shanghai petroleum and natural gas trading center is a milestone. from the perspective of the global market, natural gas is currently oversupply, but based on the profit-seeking nature of capital, the demand and supply of lng will eventually reach a balance, and there will even be a stage where supply exceeds demand. " from the perspective of the long-term development of the industry, if there are some hedging operations, such as the establishment of futures trading in the natural gas industry and giving full play to its role in sharing and reducing risks, it will benefit the development of the industry. futures trading may become a favorable pattern for the natural gas industry to control risks." chen qingbing said.

source: economic information daily