Chinese oil companies call for subsidies for construction of gas storage facilities

Lack of storage facilities contributed to China’s gas shortages this winter and tax breaks for the construction of storage facilities must be offered in order to avoid another gas crunch, say top officials from China’s two largest oil and gas producers.

According to a transcript of a speech sent to Reuters, Sinopec Vice President Ma Yongsheng said the central government should subsidise the construction of underground gas storage, LNG tanks and other importing facilities.

China National Petroleum Corp President Wang Yilin urged the government to refund value added tax on LNG imports to lower gas costs for consumers.

Sinopec’s Kong Fanqun, who heads the Shengli Oil field said a lack of storage facilities also contributed to China’s gas shortages this winter, according to the transcript.

He said the country needs an additional 50 billion cubic meters of storage facilities by 2020 to meet its own demand, five times the capacity China currently has.

7th Mar 2018