Bloomberg reported that China will boost spot purchases of liquefied natural gas this year as the country's terminal capacity increases and term contracts start in 2012

Mr Brynjar Eirik Bustnes and Mr Sophie Tan, Hong Kong based analysts at JPMorgan Chase & Co said that the nation's fuel import capacity will climb to 43.3 million tonnes a year by 2015 while long term supply contracts climb to 39 million. Existing capacity will reach at least 12.3 million tonnes in 2011 as compared with imports of 9.4 million through Guangdong, Fujian and Shanghai terminals in 2010.

Mr Bustnes and Ms Tan said in the report that "China's LNG import volumes will rise on additional regasification capacity to be completed this year. New long term supply contracts are starting in 2012, giving possible rise for the need for more spot purchases in the meantime."

PetroChina Co's first two terminals with a combined capacity of 6.5 million tonnes in Jiangsu and Liaoning may be completed in the first half. The company may rely on spot shipments during commissioning as it waits for term supplies from Qatar in 2012.

JPMorgan said that China's demand for natural gas may grow by about 20% to 135 billion cubic meters this year from 2010. Domestic production may rise by at least 10% from 93.6 billion in 2010 while imports of the cleaner burning fuel through pipelines and in liquid form may reach 32 billion from 16.2 billion.

(Sourced from www.bloomberg.net)