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About China’s Gas Industry

In the past 10 years, the Chinese government has focused on energy-saving emission reductions and increasing environmental protection efforts. China’s natural gas industry has maintained rapid development, with natural gas consumption in 2004 at 39.7 billion cubic meters, increasing to 185.5 billion cubic meters in 2014, seeing an average annual compound growth of 14%. The population using natural gas was over 250 million and the ratio of primary energy reached 5.8%.

In 2014, China's natural gas imports volume was 58.3 billion cubic meters, increasing by 12.5% compared to 2013. There were 31.3 billion cubic meters of imported pipe gas and 27 billion cubic meters of imported LNG. Natural gas consumption and import volume enjoyed rapid growth of up to 31.4%. In the construction of a natural gas infrastructure, by 2014, China built a natural gas trunk pipeline network of 830 hundred kilometers and 20 underground gas storage banks. with regard to imported gas resources, China built the A/B/C line and the central China-Burma line, with the pipeline gas import volume reaching 67 billion cubic meters. In 2006, Shenzhen built the first LNG receiving station in China – the Guangdong Dapeng LNG receiving station. By the end of 2014, China had already built 14 LNG receiving stations; LNG import capacity was over 40 million tons and six receiving stations are under construction, with a receiving capacity of up to 18 million tons. In addition, with the advance of the Sino Russian gas pipeline project, China will enjoy such natural gas supply patterns as a west-east gas pipeline, air-sea landing, gas from the south to the north and the nearest supply.

In the terminal application market, natural gas has covered resident usage, commercial, industrial, electricity power, transportation and other fields. The Chinese government promotes energy saving and emissions reduction, improving air quality through clean energy, publishing the promulgated ‘Air Pollution Prevention Action Plan’, the ‘Natural Gas Infrastructure Construction and Operation Management Approach’ and actively promoting the use of natural gas, promoting natural gas market reform, improving the natural gas pricing mechanism and the natural gas infrastructure operation management model.