China says to build 200-mln-cu.m natural gas peak regulation mechanism

sxcoal.com General,  Gas 2018-03-09 11:59:00

China is set to build natural gas pipelines and storages with a total capacity 200 million cubic meters, in order to deal with emergency supply shortage like what happened in the past winter, said the head of the country's top economic planner in a press conference on March 6.

 

When asked how to solve the gas shortage under extreme conditions, He Lifeng, director of the National Development and Reform Commission, said China will build 100 million cu m of peak regulation facilities in the three major gas suppliers of CNPC, Sinopec and CNOOC and another 100 million cu m in local regions.

 

He didn't give a specific timeline for the facilities to be completed.

 

In 2017, China's natural gas consumption came back to double-digit growth and totaled 240.7 billion cu m, with an increase of 34 billion compared with a year ago.

 

Especially in the past winter, the switch of heating system from burning coal to gas spread most regions in North China, leading to a soar in gas demand. Despite urgent imports from neighboring countries and production from the three producers, supply was far behind the consumption.

 

"It was the first time we saw gas consumption surge at such volume and speed last year," He said. "It's a warning for us that it's necessary to establish enough capacity for peak adjustment."

 

China's gas imports totaled 96.2 billion cu m in 2017, accounting for almost 40% of the total demand. It's expected China will soon become the largest natural gas importer instead of Japan.

 

"With such high gas import dependence and big consumption, if the import channels are cut off due to emergencies like natural disasters or political factors, the gas shortage must shake the society and affect people's life," said Xue Guanglin, chairman of Brightoil Holding Company and a member of the CPPCC.

 

Among the 200 million cu b of regulation capacity, most of it is planned for storage.

 

China's major production areas are located in Tarim Basin in the west, Sichuan Basin in the southwest, Ordos Basin in the north and East Sea region, with gas supply representing 91% of the demand.

 

Since major consuming area is the eastern region, it's far from solving the supply issue if only depending on regulating pipeline transmission.

 

"There must be large-scale underground gas storage in consuming cities," Xue said.

 

By end-2016, China's gas storage was less than 10 billion cu m, data showed. Underground and LNG tank storages only amounted to 8 billion cu m, a far cry from the global average.

 

There are mainly three ways to stabilize gas supply in China – underground storage, LNG tank storage and piped transmission from gas fields.

(Writing by Alex Guo  Editing by Harry Huo)
For any questions, please contact us by inqury@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editors Recommendations

1 China Coal Daily Track (Jun 21) 2018-06-21

Thermal coal Domestic market Coal mines in Yulin, Shaanxi province expected another increase in the short run as purchase was active recently from buyers in Hebei, Shandong and Shanxi. Imp

2 China's top 3 provinces contribute 68% of raw coal output in Jan-May 2018-06-21

Northern China's Inner Mongolia, Shanxi and Shaanxi produced 67.94% of the country's total raw coal in the first five months, showed data from the National Bureau of Statistics (NBS). NBS

3 CMPort concludes trade of 50% stake in Newcastle port 2018-06-21

China Merchants Port Holdings(CMPort) has taken over 50% stake in the Newcastle port at AU$607.5 million ($457.5 million) from its parent China Merchants Group on June 14, the company announced on its

4 Chinese central SOEs' profit growth accelerates in Jan-May 2018-06-21

Profit growth of China's central state-owned enterprises (SOEs) picked up pace over January-May period this year, thanks to the deepened enterprise reform and resolve in initiative and sustainable dev

5 Hubei power plants receive 3.6 Mt coal in May, up 12% MoM 2018-06-21

Central China's Hubei province saw its unified dispatch power plants receive a total of 3.62 million tonnes of coal in May from local mines and other provinces, showed data from its provincial economi

6 Sentiment fluctuation pares thermal coal trades at China's N ports 2018-06-21

China's domestic thermal coal market saw bearish and bullish sentiments both growing in recent days, rendering traders unable to judge the market trend but stay on the sidelines. Spot pri

7 S. Korea May met. coal imports down 14.2% YoY 2018-06-21

South Korea imported 2.35 million tonnes of metallurgical coal (including coking coal and PCI coal) in May, dropping 14.18% year on year and down 13.9% from the preceding month, according to the lates

8 S. Korea May thermal coal imports decrease 20% MoM 2018-06-21

South Korea's thermal coal imports (including bituminous and sub-bituminous coal) reached 8.24 million tonnes in May, down 20.61% from a month ago yet up 4.89% year on year, the latest South Korea

9 China's rail cargo shipment hits new high in May 2018-06-21

China shipped a total 338.84 million tonnes of cargoes via railways in May, rising 11.8% from the year prior, hitting a new high since this year, said China Railway Corporation on June 20.

10 Chinese govt relaxes coal import curbs to prepare for summer high demand 2018-06-21

The Chinese government has reduced restrictions on coal imports at some southern and eastern ports on concerns about higher prices and regional power shortages, as demand for electricity jumps during

Most Read Articles

1 China's major coal miners vow to ensure supply and stabilize prices 2018-06-12

While CHN Energy announced late last week to lower their June contract coal price within the "yellow range" below 600 yuan/t, more major miners have promised to lower prices to ensure adequate supply

2 Major Chinese miners work to stabilize thermal coal prices 2018-06-11

Some leading miners in China made price adjustments in response to government's call for stabilizing thermal coal price and supply, sources said. China Energy Investment Cor

3 China to launch broader environmental inspections this month 2018-06-11

China will expand environmental inspections to more cities and regions in a new round of checks from this month to April next year, the Ministry of Ecology and Environment (MEE) said in a statement on

4 China's raw coal output rises to a new high in May 2018-06-14

China's raw coal production registered a new high in May since this year, according to official data, as miners churned out the material driven mainly by tempting profit and rallying prices.

5 China's steel mills utilisation rate falls for 3rd week on environmental checks 2018-06-12

Utilisation rate at steel blast furnaces across China fell for a third consecutive week last week as of June 8, data showed, as environmental inspections continued to weigh on operation at steel mills

6 China proceeds development of coal-to-oil conversion 2018-06-15

China is developing new energy sources by converting coal into diesel. The world's first coal to diesel conversion production line, in China's Inner Mongolia autonomous region, produced 8

7 Weekly China coal market news summary (Jun 11 – Jun 15) 2018-06-15

China to launch broader environmental inspections this month China will expand environmental inspections to more cities and regions in a new round of checks from this month to April next yea

8 CHN Energy reduces contract coal prices within 600 yuan/t, sources 2018-06-11

China Energy Investment Group, also known as CHN Energy, announced to control its monthly contract prices of thermal coal, media reported late June 8, in a way to cool down the overheated coal market.

9 China plans to create a $78 bln natural gas giant 2018-06-15

Together with its massive push to have more and more residential and industrial customers switch from coal to gas, China is aiming to overhaul the ownership of its huge gas pipeline network.

10 China's 20 large steel makers launch maintenance to improve environment 2018-06-14

A total 20 Chinese large steel makers have launched maintenances since June 11, said the Ministry of Ecology and Environment days earlier, in a move to strengthen environmental inspections at key poll