Sinopec to Boost Winter Gas Supplies by 11%

China's Sinopec on Monday announced it will increase domestic gas supplies during November-March by 11 percent to 8.4 billion cubic meters (bcm) to meet winter demand.

The company further said that its gas production is expected to go up by 8 percent on year to 20 bcm aided by supplies from conventional fields such as Zhongyuan and shale gas field at Fuling in Chongqing.

Sinopec said that it is in the process of enhancing energy security by diversifying into sources such as shale gas and imported LNG.

In July this year, Sinopec’s Fuling field was verified by Chinese government as country’s largest shale gas play. China’s Ministry of Land and Resources verified proven reserves of nearly 107 billion cubic metres (bcm) in the Fuling shale gas field. Commercial production at the project commenced in March last year. The company is currently supplying the gas to local industries and households.

Company’s first LNG terminal at Shandong has began operations. The Shandong LNG project, located in East China's Shandong province, will have receiving capacity of 3 million metric tons per year after completion of the first phase.

The terminal is designed to receive LNG imported from Papua New Guinea under a binding sales and purchase agreement between Sinopec and ExxonMobil concluded 2009.