Natural gas is one of the important energy sources

At the monthly press conference of the National Development and Reform Commission on November 16, Meng Wei, spokesman of the National Development and Reform Commission, said that the National Development and Reform Commission was supporting upstream gas supply enterprises such as PetroChina, Sinopec, and CNOOC to increase reserves and production, and try to increase domestic gas production during the winter peak. Give full play to the dispatching and coordination role of the national pipeline network company, promote the completed gas storage facilities to be fully stored, make overall use of gas storage resources, and ensure the demand for supply assurance throughout the heating season, especially during peak hours.
In terms of natural gas supply, the latest data from the National Bureau of Statistics shows that in October, China produced 18.5 billion cubic meters of natural gas, a year-on-year increase of 12.3%, 7.7 percentage points faster than last month, with an average daily output of 600 million cubic meters; From January to October, 178.5 billion cubic meters of natural gas was produced, up 6% year on year.
Ye Yindan believed that, in the short term, although the complex international situation had a certain impact on the supply of natural gas in winter in China, through early preparation and effective measures, the supply of natural gas in China was generally guaranteed in the heating season this winter, and it was expected that the trend of domestic natural gas prices would remain stable throughout the heating season.
“In the long run, although the domestic natural gas demand has been weak recently and the market has entered a period of adjustment, the long-term growth of natural gas demand is still considerable as the economy continues to stabilize.” Ye Yindan said so.

10x104Nm LNG plant 5
It is worth mentioning that although the domestic natural gas price has continued to decline since November, the natural gas sector in the A-share market has risen against the trend.
Choice data shows that as of the end of November 17, the A-share natural gas index had closed at 830.4 points, and since November 1, the index has risen 5.7%. The boss of a LNG plant in southwest China said that his current liquefaction plant had received many orders from foreign natural gas purification equipment, such as nitrogen removal unit, dehydration unit and natural gas generator set.
In this regard, Yang Ru, the partner of Chunshi Group, expressed to the reporter that although the spot price of natural gas has continued to decline recently, the valuation of the natural gas sector in the A-share market has been at a low level after following the adjustment of the market. In addition, the natural gas price has fluctuated only due to short-term events. In the medium term, the geographical situation is not easing, and there is still a gap between supply and demand in the natural gas market, Therefore, this round of natural gas price decline has limited impact on the valuation of relevant domestic sectors.
“In the long run, with the adjustment of domestic real estate policies and epidemic prevention policies, the economy is expected to usher in recovery. As one of the important energy sources, the industry as a whole will benefit from the demand growth brought about by the economic recovery.” Yang Ruyi said.
Liu Youhua, deputy director of wealth research department of Paipai Network, believes that with the coming of heating season, the natural gas market will show a trend of prosperous supply and demand, and the natural gas sector is also expected to usher in a wave of valuation repair market.


Post time: Nov-21-2022