Gas Development in China Faced With Challenges
Posted: 08/15/2014 11:08:46 Edited: 08/14/2014 11:08:46 Clicks: 823
Increasing income, fast urbanization and the concerns for pollution caused by poisonous smog urge many cities in China to transfer to utilize gas instead of coal and oil when developing economy.
In the last thirteen years, gas consumption in China has increased to 1.68 hundred billion cubic meters by seven times. At present, China has already become the third largest gas consumer in the world, next to the U.S. and Russia.
The further increasing of Chinese gas consumption is expectable. The report published by IMF (International Monetary Fund) shows that power sector, industry and transportation department will be estimated to promote demands for gas to increase 3.15 hundred billion meters before 2019. Expectation of demands for gas set by Chinese government may be even higher.
However, in the next ten years, Chinese growth rate of gas will still have a large number of uncertainties.
Anne-Sophie Corbeau the gas analyst of IEA said, “The Chinese growth rate of demands for gas in the future will be faster than that currently. However, China is still faced with many barriers. To some extent, we have less optimism to the gas market in China indeed.”
The gas development in China is faced with huge challenges including physical distributions and capital investments. Supply and infrastructures of physical distributions, prices, government policies and financing to promote gas development have become other limitations.
Nowadays, Chinese government expects to raise ratio of gas in all of energy consumptions to about 8% by the end of 2015, which will be two times of actual 4% and rise to 10% further by 2020 so that it can control atmospheric pollution which caused by the utilization of mass of coals in China.
But the ability for establishing large the network of infrastructures which is used to produce, import and transmit amount of gas to meet the demands still remains to be proven.
Michael Stoppard, the gas strategist of HIS stated, “China has many repressed demands for gas, especially in the last ten years. However, the network of infrastructures and deliverability are always limitations. They cannot develop gas at a high speed indeed.”
In the last thirteen years, gas consumption in China has increased to 1.68 hundred billion cubic meters by seven times. At present, China has already become the third largest gas consumer in the world, next to the U.S. and Russia.
The further increasing of Chinese gas consumption is expectable. The report published by IMF (International Monetary Fund) shows that power sector, industry and transportation department will be estimated to promote demands for gas to increase 3.15 hundred billion meters before 2019. Expectation of demands for gas set by Chinese government may be even higher.
However, in the next ten years, Chinese growth rate of gas will still have a large number of uncertainties.
Anne-Sophie Corbeau the gas analyst of IEA said, “The Chinese growth rate of demands for gas in the future will be faster than that currently. However, China is still faced with many barriers. To some extent, we have less optimism to the gas market in China indeed.”
The gas development in China is faced with huge challenges including physical distributions and capital investments. Supply and infrastructures of physical distributions, prices, government policies and financing to promote gas development have become other limitations.
Nowadays, Chinese government expects to raise ratio of gas in all of energy consumptions to about 8% by the end of 2015, which will be two times of actual 4% and rise to 10% further by 2020 so that it can control atmospheric pollution which caused by the utilization of mass of coals in China.
But the ability for establishing large the network of infrastructures which is used to produce, import and transmit amount of gas to meet the demands still remains to be proven.
Michael Stoppard, the gas strategist of HIS stated, “China has many repressed demands for gas, especially in the last ten years. However, the network of infrastructures and deliverability are always limitations. They cannot develop gas at a high speed indeed.”
