China LPG production edges up, imports slide

Warren R. True
Chief Technology Editor

HOUSTON, Aug. 25 -- China's 2007 LPG output maintained its steady increase since 2002, while LPG imports continued their 5-year slide, according to a recently released study by FACTS Global Energy (FGE), Honolulu. Urban and rural residential use dominated Chinese demand with little impetus for LPG growth in the chemical market.

The fuel's use in fleet vehicles, however, may grow as Chinese cities try to improve their air quality, FGE disclosed.

Demand
The country produced nearly 615,000 b/d of LPG, up from 2006 by 10.8%, says FGE. Imports were slightly less than 129,000 b/d, off from 2006 by 24.3%. The country exported to other Asian countries some 10,700 b/d.

Total LPG demand in China last year reached more than 732,000 b/d, up 1.8% over 2006. For context, Asian LPG demand in 2007 was the largest of any region in the world, at about 1.97 million b/d (68 million tonnes).

LPG demand for the region—the Indian subcontinent, Southeast Asia, and Northeast Asia—surpassed that for North America at 60 million tonnes (OGJ, June 23, 2008, p. 58). China's demand last year comprised about 38.5% of Asian demand.

FGE noted that Chinese imports of LPG, whose use is dominated by urban residential demand (54%), have declined steadily since 2002, when the country imported 199,000 b/d. Production since 2002, on the other hand, has increased from 567,000 b/d that year.

After urban residential use, industrial use makes up 25% of demand, followed by rural use, 11%. There is a small component of autofuel demand. FGE says this element will likely increase, exemplified by Shanghai's new program for LPG use in taxis.

LPG is not currently in demand as feedstock in chemical production, says the report; less than 0.5% goes for ethylene production where naphtha typically dominates.

Regionally, South China and East China surpass other regions in LPG demand.

Gas competition
China's use of natural gas will grown from increased domestic production in the west, new pipeline supplies from Central Asia, and a growing LNG terminal population.
Currently there is one operating terminal in Guangdong, one is being commissioned in Fujian, and at least three more are under construction—at Shanghai, Jiangsu, and Dalian. And as many as five or six terminals are approved or proposed and likely. Much depends on supply-contract negotiations and whether the terminals' owners want to pay the high prices LNG has been fetching in Asia.

China's overall LPG use, therefore, will grow only slowly. Imports, said FGE, will continue to decline.

Nevertheless, several countries in 2007 exported LPG to China, dominated by Australia at 22.3%. The total of exports from Middle East countries (Iran, Saudi Arabia, Kuwait, UAE, Qatar, Bahrain, and Oman) made up more than 68% of import volumes.

Guangdong Province in the south dominated imports, garnering nearly 72%. Jiangsu (Shanghai) was second with 8.5% of imports.

Related Articles

Modeling determines solvent applicability in SAGD

02/02/2015

Solvents are used to increase production and reduce steam-to-oil ratio in steam-assisted gravity drainage

Kazakhstan advances refinery modernization program

01/19/2015 Kazakhstan's state-owned KazMunaiGas (KMG) has secured financing from the Development Bank of Kazakhstan JSC (DBK) for the continuing modernization...

BIS lists six condensate export considerations

01/12/2015 The US Bureau of Industry and Security listed six considerations it will use to help determine whether US-produced crude oil condensate is a petrol...

Start-up continues at Abreu e Lima refinery

01/12/2015 Petroleo Brasileiro SA (Petrobras) has initiated the start-up of furnaces in the atmospheric distillation unit at its Abreu e Lima refinery (Rnest)...

Moody's: Russian oil-tax change helps exporters

12/22/2014 A new adjustment to Russian oil and gas taxation will benefit oil companies that export most of their crude oil and high-grade oil products but hur...

Barton introduces bill to remove US crude export limits

12/22/2014

US Rep. Joe Barton (R-Tex.) introduced legislation that would remove US crude oil export limits that have been in place for nearly 40 years.

West Cornwall Township hears from Sunoco Logistics

12/12/2014

Sunoco Logistics Partners outlined its safety systems during a West Cornwall Township meeting in Pennsylvania on Nov. 10.

Cost-benefit believability

12/08/2014 In anticipation of what might become the costliest federal regulation in US history, Congress should join the Supreme Court in reviewing the Enviro...

EPA poses tighter ground-level ozone pollution controls

12/08/2014 The US Environmental Protection Agency proposed reducing ground-level emissions limits to 65-70 ppb from its current level of 75 ppb. It also will ...
White Papers

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...
Available Webcasts


Prevention, Detection and Mitigation of pipeline leaks in the modern world

When Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST



On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected