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

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...

Quicksilver Canada gets LNG export approval

07/02/2015 Quicksilver Resources Canada Inc. has received approval from the National Energy Board of Canada to export 20 million tonnes/year of LNG from a pos...

Origin lets contract for Otway basin fields

07/02/2015 Origin Energy Ltd., Sydney, has let a $1.3 million (Aus.) contract to Wood Group Kenny for provision of a detailed engineering design for the onsho...

Puma Energy completes purchase of Murco’s UK refinery, terminals

07/02/2015 Singapore-based Puma Energy Group Pte. has completed its purchase of UK midstream and downstream assets from Murco Petroleum Ltd., a subsidiary of ...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...

SIBUR plans MTBE expansion at Togliattikauchuk

07/01/2015 Russian conglomerate OAO SIBUR Holding, Moscow, has started preparatory work for a project designed to expand production capacity for methyl tertia...

Shell makes FID on Appomattox deepwater development in Gulf of Mexico

07/01/2015 Royal Dutch Shell PLC has taken a final investment decision (FID) on the Appomattox deepwater development, authorizing construction and installatio...

Woodside-led Browse FLNG venture enters FEED phase

07/01/2015 The Woodside Petroleum Ltd.-led Browse LNG joint venture has entered the front-end engineering and design phase for a floating LNG (FLNG) developme...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

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
Available Webcasts


Operating a Sustainable Oil & Gas Supply Chain in North America

When Wed, Oct 7, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.

register:WEBCAST


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

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