PetroChina and PipeChina Launch $3.6 Billion Gas Storage Joint Ventures

Core Insights - PetroChina and PipeChina have established two major gas storage companies to enhance natural gas capacity and stabilize energy supply in response to increasing demand [1][2] Group 1: New Ventures and Investments - The new gas storage companies, Liaohe Gas Storage and Xinjiang Gas Storage, have a combined registered capital exceeding 25.6 billion yuan ($3.62 billion) [2] - Liaohe Gas Storage will focus on storage and logistics, while Xinjiang Gas Storage will manage gas production and supply [2] - PetroChina's proposal to acquire gas storage assets from CNPC for 40.02 billion yuan ($5.65 billion) will add nearly 11 billion cubic meters (bcm) of working gas storage capacity [3] Group 2: Growth in Gas Storage Capacity - China has made significant gains in underground gas storage (UGS) capacity, adding 6 bcm since 2022, ranking sixth globally [4] - The International Gas Union (IGU) noted that while developed markets have plateaued in gas storage growth, China continues to expand aggressively [5] Group 3: Strategic Objectives - The expansion of domestic storage aims to reduce reliance on imported spot LNG cargoes, addressing vulnerabilities during global energy price fluctuations [6] - The operational expansion of China's first underground salt cavern gas storage facility enhances resilience to winter demand spikes [7] - China's strategy emphasizes reliability, affordability, and supply security in the context of fluctuating global markets, with natural gas serving as a transitional energy source [7]