Natural Gas Development Report Issued
Year:2017 ISSUE:18
COLUMN:ECONOMY AND BUSINESS
Click:317    DateTime:Nov.30,2017
Natural Gas Development Report Issued

China’s apparent consumption of natural gas for 2016 was up 6.6% YoY to 205.8 billion cubic meters, supporting 6.4% of the nation’s primary energy use (far lower than the world’s 24.1%) and serving more users, exceeding 300 million for the first time, according to Natural Gas Development Report (2017 Edition), recently released by the National Energy Administration, the Development Research Center of the State Council and the Ministry of Land and Resources.
China produced 136.9 billion (up 1.7% YoY) cubic meters of natural gas in 2016 and imported 72.1 billion cubic meters, providing for 35% of domestic consumption. By the end of 2016, China had constructed 68 000 kilometers of natural gas pipelines, with a combined gas transmission capacity of main pipelines exceeding 280 billion cubic meters per year. China has improved natural gas infrastructures to strengthen storage, delivery and supply capabilities.
However, some problems still exist. For example, China’s natural gas gate prices, composed of factory prices (import prices) and pipeline transmission expenses, are framed by the government rather than market forces. Seasonal and peak-shaving gas prices are not popular. In addition, end users fail to enjoy benefits of reform, because of too many middle links of natural gas pipeline operations and gas distribution network operations. Hence, China’s natural gas industry has greater potential if these problems can be solved properly.