Natural gas consumption in China will grow tremendously in next ten years to represent 10% share in the country’s primary energy consumption, owing to the strong government support.
Chairman of PetroChina Company Limited, Zhou Jiping anticipated that by 2020, China’s natural gas consumption will account for 10% of country’s annual total primary energy consumption from the current level of 3.9%, reported Xinhua
on June 8, 2010.
As the demand for natural gas in China is anticipated to rise over the next decade, the country’s annual natural gas consumption will reach 300 Billion Cubic Meters. In 2009, its natural gas consumption was 88.7 Billion Cubic Meters.
The consumption touched a record high of 10.7 Billion Cubic Feet per day in April 2010, up 34% over the previous year. Northern China’s abnormally low temperature played a crucial role in this growth.
At an energy conference, Zhou highlighted that it is a feasible way to increase the proportion of natural gas in the country’s energy composition to achieve the aim of reducing carbon emission.
In addition to this, development of the natural gas industry in the urban areas of China has faced overwhelming demands. Especially, with the rapid industrialization as well as surging requirements of energy mix optimization and environmental protection, demand for natural gas is booming in China, owning to social and economic development.
The Government of China is also giving huge importance to the development of gas industry and has established some stimulative policies in this regard. It is clearly demonstrated in the 11th Five-Year Plan of Energy Development that the share of gas in total primary energy production shall be up to 5% and that in total energy consumption, 5.3%, by 2010. Another 2% shall be added in the next five years.
China is hunting for alternatives to its increasing oil purchases, which is making the prospects bright for the local companies that are engaged in producing and distributing natural gas.
Moreover, gas is a cheaper alternative to oil, and therefore it is more attractive as a source of energy.
According to a Research Analyst at RNCOS
, “In past few years, natural gas industry has seen rapid development and has gained significant attention in China. At the end of 2009, 2.46 Trillion Cubic Meters of natural gas was discovered, representing 1.3% share in the natural gas reserves globally. Moreover, most of the reserves are still unexploited, which provides huge opportunities for gas companies to tap the potential of the country’s natural gas industry.”
Related Market Research Reports: