Introduction: 2019 is about to pass, and the natural gas industry has experienced ups and downs this year. Looking back to 2019, a lot of major events happened in the natural gas industry, such as the establishment of the state pipe network company and the ventilation of the natural gas pipeline (North Section) of the East China Russia line, which had a significant impact on the industry. Let’s review the major events in 2019.

1、 China’s first deepwater self operated gas field started construction

According to the news on January 10, the semi submersible production platform of Lingshui 17-2 gas field development project, China’s first deep-water self operated gas field, has recently started construction at the Qingdao manufacturing site of offshore oil engineering. The gas field is expected to be put into production as soon as the end of the 13th five year plan, with an annual production of about 3 billion to 3.5 billion cubic meters of natural gas. This will effectively promote the development of deep-water oil and gas resources in the South China Sea, and is of great significance to the construction of the South China Sea atmospheric area and the protection of China’s energy security.

2、 Notice of the development and Reform Commission on adjusting the price of natural gas benchmark stations

According to the information of the national development and Reform Commission on March 29, the national development and Reform Commission issued the notice on adjusting the price of natural gas base gate station, which decided to adjust the price of natural gas base gate station of each province (District, city) from April 1, 2019, with a minimum of 1030 yuan / thousand cubic meters (including 9% value-added tax). The combination of residential and non residential natural gas prices does not only mean the price increase, which is also the only way to reform the natural gas price in China, to ensure the healthy and orderly development of the natural gas market in China.

3、 ExxonMobil signs a 20-year supply agreement with China

ExxonMobil, the world’s largest non-governmental oil and gas producer, announced recently that it had signed a 20-year LNG supply agreement with China’s Zhejiang energy group, with a contract volume of 1 million tons / year, CNN reported on April 23. It is reported that about 1.4 billion cubic meters of 1 million tons of liquefied natural gas will be vaporized, which is equivalent to the current one-year consumption of Zhejiang civil gas, and can meet the existing natural gas users in Zhejiang. As the world’s largest non-governmental oil and gas producer, ExxonMobil is the industry leader in many aspects of energy and petrochemical industry. The re entry of us natural gas into the Chinese market will undoubtedly squeeze Australia’s share in the Chinese natural gas market. Combined with Australia’s attitude towards Huawei issues or international decision-making, China’s purchase of us natural gas has more advantages than disadvantages in general.

4、 Major changes in natural gas pricing

According to the news on June 14, in order to improve the utilization efficiency of oil and gas pipeline network facilities, promote the safe and stable supply of oil and gas, standardize the opening behavior of oil and gas pipeline network facilities, and safeguard the legitimate rights and interests of the operation enterprises and users of oil and gas pipeline network facilities, the national development and Reform Commission, the national energy administration and other four departments formulated the supervision measures for the fair opening of oil and gas pipeline network facilities, which was implemented on May 24. It is pointed out in the measures that after the opening of oil and gas pipeline network facilities, the calorific value quality of mixed transmission natural gas is different. Adopting energy measurement method is conducive to accurate measurement, fairness, reduction of settlement disputes, healthy development of natural gas industry and internationalization of China’s natural gas market. The implementation of energy measurement can ensure the accuracy of natural gas trade measurement to the greatest extent, reduce measurement trade disputes, and ensure the economic and social benefits of enterprises.

5、 Increasing the exploration and development of oil and gas in China to ensure the national energy security

On July 8, PetroChina and Sinopec signed a joint research framework agreement on Tarim Basin, Junggar Basin and Sichuan Basin, involving 81 exploration rights and a total area of about 305800 square kilometers. On July 10, Sinopec and CNOOC (China) Co., Ltd., a subsidiary of CNOOC, signed a cooperation framework agreement on Bohai Bay, Beibu Bay, South Yellow Sea and Subei basin, involving 19 exploration rights of both sides and a total area of 26900 square kilometers. “Three barrels of oil” sign an agreement with each other, join hands with China’s oil and gas exploration, and allow foreign investment to enter China’s oil and gas exploration, which is conducive to promoting China’s oil and gas opening cooperation, increasing the intensity of oil and gas exploration and development, improving oil and gas exploration and development technology, and ensuring national energy security.

6、 The attack on Saudi oil fields has reduced the supply of natural gas by about 2 billion cubic meters

According to foreign media reports, Saudi Aramco was attacked by drones at around 8 a.m. Beijing time on September 14, resulting in a sharp reduction of 5.7 million barrels of special oil per day, close to 6% of the global oil production. Saudi energy minister Abdulaziz said on the 15th that the explosion of facilities on the 14th also reduced Saudi Arabia’s natural gas supply by about 2 billion cubic meters, resulting in Saudi Arabia’s ethane and liquefied natural gas Supply will shrink by 50%. But he said domestic supplies of fuel and water and electricity had not been affected.

7、 100 billion square gas field discovered in Tarim Oilfield

On October 3, the well test of Bozi 9 of Tarim Oilfield Company of PetroChina was successful, with high-yield industrial oil and gas flow, 418200 cubic meters of natural gas and 115.15 cubic meters of condensate per day. It has become another one hundred billion cubic meters gas field found in the south of Tianshan in one year, marking the substantial progress of the construction of the second trillion cubic meters atmospheric area in Tarim Oilfield. This indicates that substantial progress has been made in the construction of the second trillion square meter atmospheric area in Tarim Oilfield. The breakthrough of well Bozi 9 will not only add “bottom gas” for the construction of 30 million tons of large oil and gas fields in Tarim Oilfield, but also add new gas sources for the gas transmission from west to East and the gas consumption in South Xinjiang, so as to further guarantee the domestic natural gas supply.

8、 Crazy! LNG prices soared 23.7% in a single day

On October 30, the starting base price of Northwest feed gas auction was raised to 1.57 yuan / m3, and the final transaction price was 26-2.75 yuan / m3. The volume of registered orders in the auction was 100 million cubic meters, 80 million cubic meters less than that in the last time. Driven by the rising cost, the domestic LNG price rose sharply, nearly 1000 yuan rose overnight, and multiple terminals linked with the rise. The scope of this surge is almost national and large-scale, and it is also a large one-day increase in recent years. According to the data monitoring of the business association, the average price of LNG on October 30 was 3840 yuan / ton, and the average price on October 31 was 4750 yuan / ton, up nearly 1000 yuan per day, up 23.7%,

9、 China Russia east gas pipeline (North Section) officially put into operation for ventilation

On December 2, the natural gas pipeline (North Section) of the China Russia east line was officially put into operation for ventilation. The natural gas pipeline of the China Russia east line will be interconnected with the existing regional gas transmission network, which can stably supply 38 billion cubic meters of clean and high-quality natural gas resources to the northeast, Bohai rim and Yangtze River Delta every year, effectively improving and alleviating the air pollution along the line. After the official acceptance of Russian gas, Northeast China and Beijing Tianjin Hebei region will benefit directly.

10、 Establishment of national pipe network company

On December 9, the state oil and gas pipeline network Group Co., Ltd. (hereinafter referred to as “the state pipeline network company”) was established, which is a major measure to deepen the reform of the oil and gas industry and ensure the safe and stable supply of oil and gas. The national pipeline network company will build a “one network for the whole country” to realize the interconnection of long-distance oil and gas pipelines, better guarantee the national energy security, and promote the high-quality development of the oil and gas industry. It is a key step to deepen the reform of the oil and gas system in China, promote the formation of the “x + 1 + X” oil and gas market system, an important part of deepening the reform of the oil and gas system, and a very basic and key measure It is an important part of deepening the reform of oil and gas system, as well as a very basic and key measure, which can better guarantee the national energy security, promote the high-quality development of oil and gas industry and meet the people’s needs for a better life.

1、21.18%

According to the monitoring of the business agency, PX price dropped by 21.18% in 2019, 8500 yuan / ton at the beginning of the year, 6700 yuan / ton at the end of the year, and 21.18% in the whole year. In 2019, the lowest price of PX is 6600 yuan / ton on September 3, and the highest price is 9000 yuan / ton on March 12, with a maximum amplitude of 36.36%.

2. US $10 / ton

The profit of PX products in 2019 dropped sharply, with the annual profit of 10, the highest profit in April was 240 USD / T, the lowest profit in November was – 70 USD / T, but the annual average profit was about 10 USD / T, significantly lower than that in 2018, and the high profit was mainly concentrated in the period from January to April.

3. 20.365 million tons

In 2019, the domestic PX capacity will be up to 20.365 million tons. In 2019, the domestic refining and chemical plant in Hainan will increase by 1 million tons, the new capacity of Hongrun chemical will be 600000 tons, and the new capacity of Hengli petrochemical plant will be 4.5 million tons. The capacity of other units will not change, but the domestic production will only be about 15 million tons.

4. 70%

In 2019, the overall operation rate of PX in China will be about 7.30%, Fuhai will start an 800000 ton production line for 1.6 million ton plant, Urumqi petrochemical plant will start at 50%, Hainan refining and chemical plant phase II will be put into operation in October, Hengli Petrochemical will start a 2.25 million ton plant, and the overall operation rate of PX in China will be at a low level of 7.30%.

5、48%

In 2019, the domestic PX dependence on foreign countries dropped to 48%. According to the statistics, the total PX import in 2019 was about 14 million tons, the domestic output was about 15 million tons, and the dependence on foreign countries was still as high as 48%. However, 2019 was a year when the PX dependence on foreign countries declined.

6. 55.805 million tons

According to statistics, the total capacity of PX in Asia is 55.805 million tons, including 2011.5 million tons in China, 9.95 million tons in South Korea, 3.89 million tons in Japan, 5.68 million tons in India, and 70% of PX products from Japan and South Korea are exported to China.

I. price trend

According to the data of the business club’s large scale list, the market price trend of cryolite in this week is down. The average market price at the beginning of the week is about 6100.00 yuan / ton, and the average market price at the end of the week is about 5900.00 yuan / ton. The price is down 200 yuan / ton, down 3.28%, 8.29% year-on-year.

II. Market analysis

Product: this week, the price trend of cryolite fell. Cryolite enterprises had sufficient inventory and fair transactions. The quotation of manufacturers in Henan Province was mainly stable, and the quotation of individual enterprises was reduced. The main reason is that the market competition pressure of enterprises is great, and the price of purchasers is low, and they tend to purchase at low prices. As of the 13th, the price of cryolite in Shandong Province has been temporarily stable, with the ex factory quotation of 6500-6950 yuan / ton; the ex factory quotation of cryolite in Henan Province has been lowered, with the market price of 4800-6500 yuan / ton. At present, the price of cryolite of Zhengzhou Zerun Energy Chemical Co., Ltd. is 4800 yuan / ton; that of Jiaozuo Minli industry is 6500 yuan / ton; that of Zhengzhou Tianrui crystal technology is 6400 yuan / ton.

Industry chain: the price trend of fluorite in the upstream of cryolite is stable this week. The average price of domestic market at the weekend is about 2883.33 yuan / ton, which is flat compared with the beginning of the week. In recent years, the price trend of fluorite in China has been fluctuating, with little change in price. The market for goods in the market is general, and the downstream is purchased on demand. The spot supply of fluorite is normal. In the downstream aluminum industry, the aluminum price this week shows the trend of “roller coaster”. The average market price at the beginning of the week is 14080.00 yuan / ton, and at the end of the week is 14023.33 yuan / ton, down 156.67 yuan / ton. The price in the week is down 0.40%, and the overall price has little change. Since the start of heating in winter, due to the production policy of environmental protection industry, the aluminum output may be reduced, and the upstream cryolite industry will also be affected.

III. future forecast

According to the cryolite product analyst of the business association, at present, the quotation of cryolite market is multi-dimensional and stable, the manufacturer’s devices are in normal operation, the inventory is sufficient, and the shipment is acceptable. When the supply exceeds the demand, the enterprise’s competitive pressure is obvious, and the downstream purchase tends to be low, on the other hand, the upstream raw material impact also exists. It is expected that the cryolite market will be stable and sorted in the later stage, with specific attention to market demand.

I. price trend

According to the price monitoring of the business agency, the factory price of domestic refrigerant R22 this week ran smoothly. On December 9, the average price of mainstream manufacturers was 17100 yuan / ton, and on the weekend (13 days), 17100 yuan / ton. This week’s market was stable. On December 15, the R22 commodity index was 102.60, which was the same as yesterday, a new record in the cycle, 23.02% higher than 83.40, the lowest point on October 14, 2019. (Note: cycle refers to 2019-09-01 till now)

II. Market analysis

Product: market price of R22 in refrigerant market is stable this week. At the end of the year, the quota of refrigerant R22 was gone, and the market was out of stock. Most manufacturers basically did not receive new orders. They mainly supply orders, and the price was high and stable. Hydrofluoric acid at the raw material end rose this week, with strong cost side and no improvement in refrigerant R22 demand at the terminal. The transaction price of bulk water market of traders is chaotic, and the supply of goods in their hands is tight. According to the data monitoring of Italian society, as of December 16, the average price of refrigerant R22 was 17100 yuan / ton, and the quotation was mostly concentrated in the range of 14500 yuan / ton to 18800 yuan / ton. The trend of refrigerant R22 was stable.

Industry chain: the price trend of domestic hydrofluoric acid and hydrofluoric acid of upstream products is rising. In the near future, the factory in the field is generally in good condition, and the spot supply in the field is normal. The price of domestic trichloromethane of upstream products fell. Due to the shortage of supply in the early stage, the supply in the industry is still tight at present. In addition, the supply of trichloromethane in Shandong Province is gradually recovering. Under the condition that the supply exceeds the demand, the price of trichloromethane is expected to gradually drop. The downstream market’s receiving intention is flat, and the industry’s trading is slightly light. The terminal air conditioner manufacturer starts at a low level and the demand is flat.

Industry: according to the price monitoring of the business agency, in the 49th week of 2019 (12.9-12.13), there are 24 kinds of commodities rising month on month in the chemical industry sector, including 4 kinds of commodities rising by more than 5%, accounting for 4.7% of the number of commodities monitored in the sector; the top three commodities are glycol (17.59%), crude benzene (7.07%) and aniline (6.81%). There are 28 commodities with a decline of more than 5% on a month on month basis, accounting for 1.2% of the number of commodities monitored in the sector; the top three products with a decline are hydrochloric acid (- 6.41%), chloroform (- 4.55%), and bisphenol A (- 3.62%). This week’s average was 0.07%.

III. future forecast

According to the refrigerant analyst of the business club, the quota of R22 enterprise is no longer available, and there is a shortage of goods. Most manufacturers do not accept new orders, mainly supply orders, and the price is high and stable. It is expected that R22 will run smoothly in the short term.

I. price trend

According to the price monitoring of the business agency, the selling price of sulfuric acid in Shandong fell slightly this week. The quotation dropped from 280.00 yuan / ton at the beginning of the week to 273.33 yuan / ton at the end of the week, down 2.38%, down 25.46% year on year. Overall, the sulfuric acid market fell slightly this week, with the sulfuric acid commodity index at 42.54 on December 13

II. Market analysis

(I) products:

This week, the price of the mainstream sulfuric acid manufacturers in Shandong Province fell slightly, the inventory of manufacturers was small, and the downstream demand was general. The weekend quotation of Heze Jiangyuan is 240 yuan / ton, which is slightly lower than that at the beginning of the week, with a decrease of 20 yuan / ton; the weekend quotation of Zouping Tianlu is 130 yuan / ton, which is temporarily stable compared with that at the beginning of the week; the weekend quotation of Jinan Yuanfei is 450 yuan / ton, which is temporarily stable.

(II) industrial chain:

In recent years, the domestic sulfur market has declined slightly. The trading atmosphere in the downstream monoammonium market is not good, the trading volume is light, and the trading volume of new orders is not ideal. The market of diammonium is also low and consolidated, and the downstream demand is less. Sulfuric acid enterprises often issue early orders, short-term construction is insufficient, and the supply is slightly tight. This week, the domestic sulfuric acid plants operated smoothly, the market supply was relatively tight, the downstream gas buying was general, and the market turnover was limited.

III. future forecast

After the adjustment in November, the capital return of each plant is in good condition, the equipment maintenance is completed, and the production capacity is increased. The upstream sulfur price fell, the downstream construction was general, and the product trend fell under the contradiction between supply and demand. According to analysts of business association sulfuric acid, under the influence of supply and demand and raw materials, the market position of sulfuric acid is mainly consolidated.