Tue Nov 24, 2009 2:30am
BEIJING, Nov 24 (Reuters) - Natural gas supplies for China's industrial users will have to be further cut in coming months to divert supply for residential demand, the in-house newspaper of top gas supplier CNPC reported on Tuesday.
Gas for household needs and for heating can be guaranteed in the winter and spring by further reducing supplies to industrial users, the report said, citing Lin Changhai, general manager of PetroChina's (0857.HK) sales unit in northern China.
CNPC operates its core businesses via listed PetroChina (601857.SS).
Gas shortages are expected to reach 8 million cubic metres a day in northern China and 5 million to 6 million cubic metres a day in southern China during the peak consumption season in December and January, the report said.
PetroChina's northern China gas sales unit will cut gas supplies to industrial users by another 3 million cubic metres a day or 10 percent after having cut 3 million cubic metres per day recently, to meet household and heating need in Beijing, Tianjin, Hebei, Shandong, Shanxi and Shaanxi provinces.
The supply of gas to PetroChina's Lanzhou refinery and Ningxia refinery will also be affected, the report said.
Its West-East Gas Pipeline unit, which operates the flagship long distance pipeline, has also reduced supplies to industrial users by 3 million cubic metres a day, or 8 percent, to ease tight supplies in southern China, the report said.
On Monday, the National Development and Reform Commission said tight gas supplies are gradually easing across the country. [ID:nPEK298189]
(Reporting by Jim Bai and Tom Miles; Editing by Ken Wills)
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Source: http://uk.reuters.com/article/idUKPEK32293320091124
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