BEIJING, Dec 22 (Reuters) – China’s major oil and gas operator Sinopec stepped up efforts to increase domestic gas supplies as widespread shortages hit more cities this week.

Sinopec said it will increase upstream production by 1.1 million cubic metres per day and has hired 40 trucks to deliver LNG from its Beihai LNG terminal in south Guangxi province to northern China regions.

The latest move from Sinopec showed major producers are now in a scramble to ease the gas crunch that left residents freezing and factories shut.

Wuhan, a city in central China, started curbing residential consumption of gas as the crisis deepens. Chemical companies such as Yuantianhua based in southern Yunnan province also halted production line amid the gas shortage.

Sinopec said it will accelerate the construction of the key Tianjin LNG receiving terminal. The terminal is expected to provide 450 million cubic metres of LNG shipments every quarter.

In addition, the gas producer and pipeline operator has reduced supplies to industrial users by 3.9 million cubic metres per day to meet residential demand.

Sinopec said its two major storage tanks in eastern Jiangsu province and central Henan province have been fully filled.

(Reporting by Meng Meng and Aizhu Chen; Editing by Elaine Hardcastle)





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