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China: GDF Suez seals natural gas deals

26th April 2013

GDF Suez signs gas storage and LNG agreements with China’s oil and gas sector

China: GDF Suez seals natural gas deals
Under the GDF-CNPC natural gas storage agreement, the total storage volume would be 10 billion cubic meters (bcm), the equivalent of GDF Suez’s entire storage capacity in France today

French gas and power utility company GDF Suez has signed several agreements with Chinese partners in the field of natural gas storage and LNG regasification facilities, the company announced in a written statement on Thursday, as French business extended a hand to its Chinese counterparts during a visit by French president François Hollande.

 

Gérard Mestrallet, chairman and CEO of GDF SUEZ, said: “The signing of these agreements is proof of our commitment to China. It enables us to increase and diversify GDF Suez’s activities in this country… [and is] part of GDF Suez’s strategy to expand its presence in high-growth markets, particularly in the Asia-Pacific region.”

 

One agreement signed with state-owned CNPC schedules the assessment of six projects to convert depleted gas fields into underground natural gas storage facilities, which its subsidiary PetroChina plans to fill with gas in 2013. The total storage volume would be 10 billion cubic meters (bcm), the equivalent of GDF Suez’s entire storage capacity in France today.

 

The company says China’s twelfth five-year plan currently in effect requires the construction of approximately 24 underground storage facilities, with a useful volume of 30 bcm by 2017, compared to 3 bcm today.

 

This is GDF Suez’s first agreement with China in the field of natural gas storage, as Beijing seeks to replace coal with cleaner natural gas. The French company says this market could double in the next five years.

 

GDF Suez will also provide China with a floating storage and regasification unit (FSRU), speeding up the possible reception of LNG in Tianjin to support the region’s growth.