China's state-run giants,China National Petroleum Corp.(CNPC),Sinopec and China National Offshore Oil Corp.(CNOOC),are all gunning to become more active global LNG traders this year,entering an increasingly cut-throat arena where competitors already include leading portfolio players and commodity trading heavyweights.Two main factors are behind the move,Chinese industry insiders say.The first is domestic oversupply,caused partly by an easing in government coal-to-gas switching policy that is crimping gas demand growth.Sinopec reckons supply will rise by 8.9% to 335 billion cubic meters(32.4 billion cubic feet per day)in 2020 and demand by 8.8% to 329 Bern.The second is the establishment of national pipeline grid company PipeChina,which will take over the majors’pipeline operations,depriving them of a key source of profits and forcing them to look to new business areas.
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