"Chinese natural gas consumption was reported to have increased 23.8% to 8.8 billion cubic meters in August from a year ago levels, while consumption over the first eight months of the year grew 21% to 69.2 Bcm versus 2009 levels, according to the latest data from the Chinese National Development and Reform Commission (NDRC). Rising consumption appeared to be spread across the country and will put pressure on China to continue its effort to increase domestic production levels and both pipeline and LNG imports this winter to avoid shuttering factories during this upcoming winter to avoid a repeat of last year's winter shutdowns. The NDRC reported that gas inventories at Dagang storage site (the main storage site for the northern Beijing and Tianjin regions) has 1.6 Bcm of gas in storage, more than 400 Mcm above a year ago levels. . .Chinese imports of gas from Central Asia have risen to 2.38 Bcm during the first eight months of this year and. . .August gas imports (including LNG imports) nearly doubled from year-ago levels to 1.77 Bcm."One billion cubic meters is ~35 bcf. If my math is right, then China's daily gas demand is ~10 bcf, having grown from about 7.5 bcfd a year ago. This consumption level is modest relative to U.S. demand of more than 60 bcf per day. We can expect rampant growth in China's gas demand for years to come–especially if the nation accedes to green pressure to slow its building of coal-fired power plants. All the more reason for U.S. producers to get into the LNG export game.
A Product We Can Sell to China: Nat Gas
Source: Forbes, Christopher Helman (9/29/10)
"China's rising gas demand to drive U.S. LNG export game?"