To control costs and curb losses, PetroChina will renegotiate prices with global gas suppliers. For energy prices, the impact of Covid-19 has been destructive as measures to contain it have destroyed demand. Supplies, on the other hand, have swollen.
Some gas contracts with suppliers cancelled by PetroChina earlier this month, including LNG from Australia and Qatar and piped gas from central Asia. On the transfer of pipeline assets, PetroChina is also striving for a deal with a newly-established national pipeline group in the country.
After China became the first country to suffer from the outbreak of the Covid-19, refinery operations cut significantly by PetroChina in February. As efforts to contain the virus succeeded, PetroChina said Chinese production has started to pick up this month. However, energy companies across the world are reviewing costs as the virus now has spread to the rest of the world.
From an earlier planned budget of $41.66 billion, PetroChina said it would dynamically optimize and adjust spending this year. PetroChina didn’t give any new target.
