Customer Development Is The Key Element To Guarantee The Smooth Implementation Of LNG Project In Shenzhen

Take-or-pay is the international practice for the purchase and sales of natural gas, which like a sword with double blades as for the buyer of natural gas. This mode makes the supply of natural gas stable and reliable for a long period of time, and makes the buyer obtain a long-term stable gas price as well as the economic profit; on the other hand, it poses a strict requirement on the NG utilization market of Buyer for the reason that the Buyer must still pay the contract price based on its TOP volume even though the sales volume of buyer's gas utilization market is less than the gas volume in TOP contract.In some previous NG utilization projects in China, painful lessons, of paying to up-stream without any return whilst committing a tremendous lost as the consequence of un-confirming the gas users even when the gas is available, had been drawn due to the buyer's insufficient understanding of economic and social impact incurred by the project, the in-active reaction of the market, un-timely exploration of customers, etc.In June, 2006, the Guangdong LNG Project will be put into operation and supply the natural gas to Shenzhen. As the unique sponsor of SZ NG utilization project in Shenzhen, Shenzhen Gas Corporation Ltd. will invest RMB 2 billion to construct the high-voltage pipeline for city gas transportation within Shenzhen Administrative Region, matching with the up-stream project, and in compliance with the requirement on gas volume of TOP Contract signed with Guangdong Parties. Therefore, it is an important topic, which relates to whether the Shenzhen NG utilization project can be smoothly implemented and whether the best economic and social benefits can be obtained, to explore the market, develop the critical users, increase the volume supplied by pipeline, strive for that the users' gas volume can achieve or exceed the requirement on TOP volume when the NG is available.The research topic hereinof is based on the contents above-mentioned, which is developing the discussion from the angle of how to develop the downstream market, explore the customers and increase the gas volume before/after the availability of natural gas in Shenzhen, to provide a certain reference to the smooth implementation of natural gas utilization project in Shenzhen, as well as use for reference to the similar LNG utilization projects in China.