AsianOil: Increased LNG orders in China mask rural shortages

Despite much being made of China’s post-COVID recovery and increased LNG orders of late, the increase in gas flows to China is also needed to help alleviate shortages in some of the country’s more rural areas.

The nation’s Hebei Province, a large pocket of land surrounding Beijing, is a prime example.

Rural areas of the province, home to around 75mn but with 40% of the population employed in agriculture and forestry related industries, have seen severe gas shortages for the past three months, with rare anti-government protests erupting in isolated cases.

Officially these shortages have been put down to limited inbound LNG and upstream agencies in the industry preferring to put in place longer-term contracts with more influential customers on the industrial east coast than regional governments in rural China.

State media in some parts of China have now started to report on the issue, in what is seen as a marker of just how serious the central government is taking the problem.

Shortages in Hebei were first reported in the late autumn of 2022, continuing until mid-January this year, according to Chinese language media.

Problems faced by those looking to purchase gas have centred on lack of supply or frequent interruptions in flow to many parts of the province.

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