2018 China LNG Truck Amount Jumped Greatly

SCI99

2018-12-26

2018 China LNG Truck Amount Jumped Greatly

In the 2017-2018 heating season, the coal-to-gas reform all around China pushed up the LNG demand greatly. Due to the long construction period of gas pipeline, China had to import more LNG to fulfil the demand. Thus, the terminal truck loading volume jumped greatly in 2018: For instance, the truck loading volume in both CNOOC Tianjin FSRU and CNOOC Ningbo Terminal increased by 50% Y-O-Y.

Many LNG terminals were put into operation intensively in the past few years, resulting in decreasing transportation distance and increasing import dependence rate. The imported LNG took up nearly 100% of the total LNG supply in some provinces and cities in South China and East China, and took up 60%-80% of the total in provinces and cities in the North such as Beijing, Tianjin, Hebei, Shandong and Liaoning.

China’s LNG truck parc is predicted to reach 11,586 by the end of 2018, up 25.85% Y-O-Y. The growth rate of the LNG truck amount’s increase increases by 10.14%. Encouraged by the bullish LNG market in the 2017-2018 heating season, capital flowed into the market, small-scale logistics enterprises entered the game actively and present participants purchased many new trucks.

The newly-added LNG trucks were mainly in Hebei Province and Shandong Province. This is because that the coal-to-gas reform was advanced stoutly in these two provinces, resulting to gas shortage and extremely high LNG price here. The environmental protection supervision was more restricted in North China than that in other regions, so market participants here purchased more LNG trucks to prepare for the booming LNG market in 2018.