Import Data News
- Govt. clamps down on LNG entrepreneurs
Date: 31-May-2007 Sources: (Shenzhen Daily)
THE government will use a new import licensing system to clamp down on small private and government firms trying to import natural gas, currently in short supply across much of the country, State media said Tuesday.
China is abolishing automatic import permits for a range of commodities from June 10, including liquefied natural gas (LNG). From then on, each new application for a permit will be individually examined, the Xinhua news agency said.
The new rules will protect the country's three major energy firms - Sinopec, PetroChina and CNOOC - from 'chaotic?domestic competition in the purchase of gas from overseas, the report said.
Although the import of liquefied natural gas requires expensive transportation and regasification equipment, at least one firm appeared to have decided the investment was worthwhile, as petrochemical and power companies scramble for supplies.
Two months ago, a local-level State-owned company had planned to buy an LNG carrier and degasification equipment from Japan, the Shanghai Securities News reported. The firm had developed its own individual 'go out?policy, the newspaper added, referring to government efforts to encourage its large State-owned firms to buy up assets overseas.
China is keen to boost use of clean-burning natural gas, but reluctant to pay climbing international prices for the fuel so expansion projects have stalled and many existing ventures cannot buy enough supplies.
Xinhua said domestic competition for gas supplies had allowed producer nations and companies to push up prices, although most market players say growing demand from the United States and Europe provides strongest support.
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