China LNG Group's Full LNG Supply Chain Strategy

If the Chinese government wants to achieve the target of increasing the share of natural gas in the energy mix from 6.5% to 10% in the next five years, LNG is the answer as there is not enough pipeline capacity, China LNG Group said December 13. They are already operating at full capacity and it takes time to lay more, it said.

Full LNG supply chain

For the end-user market, the Group has solely or jointly invested in about 20 companies in Tianjin, Hebei, Shandong, Henan, Shanxi, Shaanxi, Anhui, Jiangsu, Zhejiang and Hubei, and directly supplies LNG for industrial heating. It is also creating demand in the transport sector, for trucking and for ships, thanks to attractive leases.

For the middle-end market, the Group is planning to build an LNG transport fleet of around 200 LNG special trucks in eastern China, northern China and northwest China. China LNG Group has established three companies in a plan to acquire 160 LNG special trucks. It is also selectively supporting professional LNG logistic companies.

China LNG Group's customers are mainly industrial users at present and it does not intend to work with pipeline companies whose customers are mainly residential users.

Shardul Sharma