Reports from the Regional Coordinators In this issue we bring you updates from IGU’s
as an important fuel to combat air pollution,
Regional Coordinators for Asia and Asia-Pacific
reaching 300-360 bcm/y by 2020.
and for North America.
In 2016, gas accounted for 6.2% of China’s total energy mix, up from 3% in 2000. The
Overview of China’s natural gas industry
share of natural gas in the total energy mix
By Li Yalan
is expected to rise to 10% by 2020 and
Today, China is the world’s third largest gas
12% by 2030.
market after the US and Russia and sixth largest Li Yalan
City gas accounts for 41% of total gas
gas producer after the US, Russia, Iran, Qatar
demand in 2016, followed by industry (28.9%),
and Canada. Last year, China surpassed the
gas power (17.4%) and petrochemicals (12.8%).
US to become the world’s third largest gas
With an accelerated urbanisation pattern, city
importer after Japan and Germany.
gas (including gas use for transport) will continue to be the main driver for gas demand.
Market
In 2016, city gas demand grew by 15% year-on-
Over the last decade, China’s natural gas
year. Gas power is another key driver, with
market has experienced the fastest growth in
demand in 2016 rising by 8%.
the world. From 2000 to 2016, China’s demand for
Supply
natural gas has grown over seven times from
China has vast gas reserves with 50 trillion
24.5 billion cubic metres per year (bcm/y) to
cubic metres (tcm)of recoverable conventional
204 bcm/y, or 15% growth per year. Demand
gas, 22 tcm of recoverable shale gas, and
growth is expected to continue with gas seen
12.5 tcm of recoverable coal-bed methane. In 2016, China’s domestic gas production was 146 bcm, including 132.4 bcm of
v Figure 1.
bcm
China’s growing gas demand
conventional gas, 1.6 bcm coal-to-gas, 5 bcm coalbed methane and 7 bcm shale gas.
600
0.14
500
0.12
of gas via pipeline from Kazakhstan,
0.1
Turkmenistan, Uzbekistan and Myanmar, and
0.08
34.7 bcm of LNG from 13 countries including
0.06
Qatar, Australia, Indonesia, Malaysia, Russia,
0.04
and Nigeria. Imports accounted for 35.3% of
400 300 200 100
0.02 0
0 2000
2016
2020
Gas demand (bcm) Percentage in energy mix
2030
In the same year, China imported 38.6 bcm
total Chinese gas supply. Infrastructure China has developed an important domestic high-pressure gas pipeline network, with a total length of 70,000km in 2016. China is also
110 R e p o r t s f r o m t h e R e g i o n a l C o o r d i n a t o r s
