<article><p class="lead">Chinese state-controlled firm PetroChina expects to import 70bn m³ of natural gas this year, up by 2pc on 2019, with pipeline supplies making up almost 70pc of the total.</p><p>The company, China's biggest gas importer, expects pipeline supplies to hit 47bn m³ this year, said the general manager of the natural gas department at PetroChina International Wang Lei.</p><p>This will put LNG imports at 23bn m³ (16.68mn t). PetroChina's total gas imports in 2019 were 68.5bn m³, with 50.1bn m³ being pipeline imports and 18.4bn m³ (13.34mn t) LNG.</p><p>Pipeline imports from central Asia are expected to fall by 14pc to 39bn m³ this year from 45.4bn m³ in 2019. The central Asian imports, made under long-term contracts, are relatively expensive compared with lower priced spot imports, while the long-distance transmission tariff further affects competitiveness, Wang said. PetroChina has been asking its central Asia suppliers to deliver the minimum volumes under their take-or-pay contracts.</p><p>The remaining pipeline imports will come from Russia and Myanmar (Burma), at around 4bn m³ each. PetroChina is the country's sole importer of pipeline gas.</p><p>PetroChina expected to find it difficult to consume supplies from its long-term contracts and growing inventories with the pessimistic market outlook after the Covid-19 outbreak earlier this year. But gas demand has been supported by the country's economic rebound after China brought its outbreak under control since the second quarter.</p><p>PetroChina accounted of 52pc of China's total natural gas imports last year. Forecasts for a <a href="https://direct.argusmedia.com/newsandanalysis/article/2145803">colder winter</a> and continued <a href="https://direct.argusmedia.com/newsandanalysis/article/2145730">coal-to-gas conversions</a> might boost the company's LNG demand.</p><p>China's gas supplies could be tight during the peak consumption period in December and January, the country's main economic planning body the <a href="https://direct.argusmedia.com/NewsAndAnalysis/Article/2151964">NDRC</a> said earlier this week. </p><p>PetroChina made an 11.8bn yuan ($1.8bn) loss on sales of 30.5bn m³ of imported natural gas during January-June, comprising pipeline and LNG supplies, which widened by Yn632mn from a year earlier. The loss was the result of NDRC applying off-season natural gas prices for non-residential users to support China's economy, as well as oversupply of domestic gas that affected PetroChina's sales of imported LNG, the company said in its half-year results.</p><p><table class='tbl-excel'><tr><td class='tbl-header'>PetroChina pipeline gas imports (bn m&#179;)</td><td class='tbl-header'></td><td class='tbl-header'></td><td class='tbl-header'></td></tr><tr><td class='tbl-columnheader tbl-bold tbl-right'></td><td class='tbl-columnheader tbl-bold tbl-right'>Jan-Aug 2020</td><td class='tbl-columnheader tbl-bold tbl-right'>Jan-Aug 2019</td><td class='tbl-columnheader tbl-bold tbl-right'>Jan-Dec 2019</td></tr><tr><td class='tbl-rowspace'></td><td class='tbl-rowspace'></td><td class='tbl-rowspace'></td><td class='tbl-rowspace'></td></tr><tr><td class='tbl-left'>Turkmenistan</td><td class='tbl-right'>19.5</td><td class='tbl-right'>22.9</td><td class='tbl-right'>33.2</td></tr><tr><td class='tbl-left'>Kazakhstan</td><td class='tbl-right'>5.0</td><td class='tbl-right'>4.8</td><td class='tbl-right'>7.1</td></tr><tr><td class='tbl-left'>Uzbekistan</td><td class='tbl-right'>1.9</td><td class='tbl-right'>3.2</td><td class='tbl-right'>5.1</td></tr><tr><td class='tbl-left'>Myanmar</td><td class='tbl-right'>2.8</td><td class='tbl-right'>3.1</td><td class='tbl-right'>4.7</td></tr><tr><td class='tbl-left'>Russia</td><td class='tbl-right'>2.4</td><td class='tbl-right'>-</td><td class='tbl-right'>5.34mn m&#179; (Dec)</td></tr><tr><td class='tbl-footer tbl-right tbl-italic'></td><td class='tbl-footer tbl-right tbl-italic'></td><td class='tbl-footer tbl-right tbl-italic'></td><td class='tbl-footer tbl-right tbl-italic'>Source: China customs</td></tr></table></article>