Industry Trend Analysis - Line-D Now A Pipe Dream - MAY 2017

BMI View : The decision to postpone construction of Line D of the Central Asia-China natural gas pipeline project will not have a material impact on the Chinese gas market, given ample supplies and substantial contract s already in place with global LNG and pipeline gas providers.

Line D, the fourth strand of the Central Asia-China natural gas pipeline project, appears to have been postponed indefinitely. Line D was designed to be 1,000km in length, with annual capacity of 30.0bcm, providing an additional outlet for Turkmenistan to increase gas exports to China through a shorter but diplomatically complex route spanning across Uzbekistan, Tajikistan, and Kyrgyzstan.

However, in March 2017, state-owned firms CNPC and Uzbekneftegaz announced the decision to not go ahead with the construction of the Uzbek section of the pipeline, citing disputes between partners over pipeline route and difficulty of forming joint-ventures across different national oil companies (NOC).

Gas Imports Set To See Robust Growth
China - Net Pipeline Gas & LNG Exports
Negative implies imports. e/f = BMI estimate/forecast. Source: National Sources, JODI, Bloomberg, BMI

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