China's oil and gas market share further decline in the Big Three competition intensified

After nearly 10 years of rapid development, the competition in the domestic natural gas market has entered a period of intense heating. The share of CNPC in the natural gas market has begun to show a continuous downward trend.

According to a report released last week by the China National Petroleum Corporation’s Institute of Economics and Technology, China’s natural gas consumption in 2011 is forecast at 129 billion cubic meters, up 20.6% year-on-year; natural gas production is 101 billion cubic meters, up 6.9% year-on-year; and CNPC’s share in the natural gas market Then drop again.

Although CNPC is still in a dominant position in the natural gas market, it has already begun to face challenges from Sinopec and CNOOC.

China National Petroleum Corporation’s Institute of Economics and Technology recently released the 2011 Domestic and Foreign Oil and Gas Industry Development Report (hereinafter referred to as the “Report”). CNPC’s upstream oil and gas production still occupies a large market share, but the market share of natural gas production is due to Sinopec and CNOOC’s natural gas production increased significantly and declined.

According to the report, CNPC’s share of natural gas production in the country was 7.94% in 2009. In 2010, this proportion fell to 66.57%. From January to September 2011, this proportion dropped again to 64.4%; at the same time, Sinopec’s share Raised to 14.19%, CNOOC's share rose to 11.96%.

The data released earlier by CNPC also showed that CNPC completed a total of 75.5 billion cubic meters of natural gas production in 2011, a year-on-year increase of approximately 4.1%, which is lower than the national production growth of 6.9% year-on-year, which shows its growth rate in natural gas production. It has fallen behind Sinopec and CNOOC.

For this year's natural gas production plan, the press release released earlier by CNPC revealed that CNPC plans to increase its natural gas production in 2012 to 79.3 billion to 82.1 billion cubic meters, which is at least higher than the 75.5 billion cubic meters of natural gas produced in 2011. 5%.

Ren Haoning, a researcher in the energy industry at China Investment Advisors, said that CNPC’s natural gas imports will increase significantly in 2012, which will cause CNPC’s total natural gas imports to increase significantly and may lead to an increase in its share of the natural gas market.

Industry sources said that the rapid growth of domestic natural gas consumption will continue for several years, and the competition between China National Petroleum Corporation and Sinopec and CNOOC in the market will be even fiercer.

In the case of limited natural gas growth, Sinopec and CNOOC have started to make efforts in the fields of coal-based natural gas and biogas.

At the end of last year, Sinopec and Guanghui Group signed a “Framework Agreement for Coal Gas Purchase and Sale”. Guanghui’s coal-based natural gas produced in Fuyun County's comprehensive coal development project will be sold to Sinopec with a maximum sales volume of 4 billion cubic meters. m/year. In addition, a total of 9 companies including Huaneng, Huadian, Guodian, China Power Investment and Xinjiang Regent have signed agreements with Sinopec to become gas source suppliers for coal-based natural gas.

CNOOC plans to build its largest natural gas field on the land in Shuangcheng, Heilongjiang, processing waste straw and livestock excrement into industrial biogas, which is expected to produce 900 million cubic meters of biogas annually.

On the other hand, the Big Three have also placed pieces on the import of liquefied natural gas (LNG). According to statistics from China Investment Advisors, CNOOC Ltd. has five LNG receiving stations under construction, which are located in Jieyang, Guangdong, Gaolan Island, Zhuhai, Ningbo, Ningbo, Qinhuangdao and Yangpu, Hainan, and one is under review. PetroChina is in Dachan Bay, Shenzhen. The Caofeidian Port in Tangshan, Hebei Province, builds LNG terminals; Sinopec also plans to build LNG terminals in Tianjin, Guangxi and Zhuhai.