EIA: Chinese Gas Demand Will Triple by 2040
Posted: 08/26/2014 08:08:58 Edited: 08/25/2014 08:08:55 Clicks: 824
On last Friday, a report which was published by EIA claimed that Chinese gas demand will triple by 2040.
The estimation of EIA shows that Chinese gas demand will reach 1.75 hundred trillion cubic feet which is three times of 5.2 trillion cubic feet, the gas demand in 2012. It is still unclear how China will meet the demand. But EIA said that two sources will satisfy with the increasing gas demand: LNG produced in China and imported from abroad.
The data show that China may have about 111.5 billion cubic feet of exploitable shale gas resources technically, which is the largest reserves in the world. Although the resources are quite sufficient, China has difficulties on developing those resources. In spite of fresh water needed by fracturing on zones where having sufficient resources while lack of hydraulic power, other difficulties include insufficient necessary infrastructures and transmission pipeline, complicated geological form and too high costs. Those have great impact on China. The new report published by Chin’s government has already decreased the shale gas development by half by 2020.
However, EIS estimated that China will overcome those difficulties finally and realize the annual gas output of 1.01 hundred trillion cubic feet which amount 58% of demand.
The reminders are considered as being filled up imported LNG. Although the current LNG is only a small part of all demand, the market predicts that LNG imported by China will rise greatly in the coming decades. Among of LNG will come from Australia. American exporters will also occupy part of Chinese market, though Australia will lead the market in foreseeable future. By 2040, China will depend on imported LNG meeting one fifth of demand, considerably higher than 13% at present.
The report also claimed that transmission pipe will also play a key role on meeting Chinese gas demand. The total quantity of gas imported from Turkmenistan to China is predicted to exceed thrice in the next 6 years.
In fact, the pipeline connecting China with Turkmenistan is vital for gas supply in China. China-Central Asia gas pipe which was begun to build in 2009 has already an import gas resource for China. After then, other two pipes were finished. The forth pipeline is planed to start in 2014 and will be finished before the end of this decade. The four pipelines will have transmission capacity of 2.3 trillion cubic feet per year, which will be equivalent to 13% of Chinese gas demand in 2040.
The estimation of EIA shows that Chinese gas demand will reach 1.75 hundred trillion cubic feet which is three times of 5.2 trillion cubic feet, the gas demand in 2012. It is still unclear how China will meet the demand. But EIA said that two sources will satisfy with the increasing gas demand: LNG produced in China and imported from abroad.
The data show that China may have about 111.5 billion cubic feet of exploitable shale gas resources technically, which is the largest reserves in the world. Although the resources are quite sufficient, China has difficulties on developing those resources. In spite of fresh water needed by fracturing on zones where having sufficient resources while lack of hydraulic power, other difficulties include insufficient necessary infrastructures and transmission pipeline, complicated geological form and too high costs. Those have great impact on China. The new report published by Chin’s government has already decreased the shale gas development by half by 2020.
However, EIS estimated that China will overcome those difficulties finally and realize the annual gas output of 1.01 hundred trillion cubic feet which amount 58% of demand.
The reminders are considered as being filled up imported LNG. Although the current LNG is only a small part of all demand, the market predicts that LNG imported by China will rise greatly in the coming decades. Among of LNG will come from Australia. American exporters will also occupy part of Chinese market, though Australia will lead the market in foreseeable future. By 2040, China will depend on imported LNG meeting one fifth of demand, considerably higher than 13% at present.
The report also claimed that transmission pipe will also play a key role on meeting Chinese gas demand. The total quantity of gas imported from Turkmenistan to China is predicted to exceed thrice in the next 6 years.
In fact, the pipeline connecting China with Turkmenistan is vital for gas supply in China. China-Central Asia gas pipe which was begun to build in 2009 has already an import gas resource for China. After then, other two pipes were finished. The forth pipeline is planed to start in 2014 and will be finished before the end of this decade. The four pipelines will have transmission capacity of 2.3 trillion cubic feet per year, which will be equivalent to 13% of Chinese gas demand in 2040.
