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Increasing Natural Gas Demand in China - Diversification of Gas Sources to Ensure Future Supply - Product Image

Increasing Natural Gas Demand in China - Diversification of Gas Sources to Ensure Future Supply

  • Published: July 2012
  • Region: China
  • 66 pages
  • GlobalData

Increasing Natural Gas Demand in China - Diversification of Gas Sources to Ensure Future Supply

Summary

“Increasing Natural Gas Demand in China - Diversification of Gas Sources to Ensure Future Supply”, is the latest report from GlobalData, the industry analysis specialists, that analyzes China’s strategy to meet increasing natural gas demand in the country. The report provides information about China’s efforts to explore new conventional and unconventional natural gas reserves and increase production from the existing reserves. The report also provides details about new LNG regasification terminals and cross-country natural gas pipelines to China. The report is compiled using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GlobalData’s team of industry experts.

Scope

This report provides analysis about increasing natural gas demand in China, as well as the country’s strategy to diversify its natural gas sources in order to meet the increasing demand. The report primarily focuses on the following -
- Overview of the natural Gas Sector in China
- Drivers READ MORE >

1
1

1.1 List of Tables
1.2 List of Figures
2 Introduction
2.1 Overview
2.2 GlobalData Report Guidance
3 Natural Gas Finds Increasing Role in China’s Energy Sector
3.1 Overview of the Natural Gas Sector in China
3.1.1 China’s Natural Gas Demand is Expected to Reach 375 Billion Cubic Meters by 2020
3.2 Increasing Natural Gas Demand in China: Key Drivers
3.2.1 Government Policies are Driving Natural Gas Demand in China
3.2.2 Potential for Gas-fired Electricity Generation will Drive the Natural Gas Demand in China
3.2.3 The Automobile Sector is Increasingly Using Natural Gas as an Alternate Fuel in China
3.2.4 China Initiates Additional Natural Gas Price Reforms for Further Development of Natural Gas Sector in the Country
4 China is Increasing its Domestic Production of Conventional Natural Gas to Meet Growing Demand
4.1 China Plans to Increase Conventional Natural Gas Production in the South China Sea
4.1.1 CNOOC Makes Five Independent Discoveries in South China Sea in 2011
4.1.2 Husky Energy has Decided to Develop Two Natural Gas Fields in the Liwan Gas Project, South China Sea
4.1.3 Territorial Disputes among the Littoral Countries of the South China Sea is Likely to Affect China’s Planned Production of Natural Gas
4.2 China Continues to Discover and Increase Production of Conventional Natural Gas from its Onshore Reserves
4.2.1 CNPC will Accelerate the Development of Three Conventional Oil and Gas Fields in China
5 China has Identified the Strategic Importance of the Development of its Shale Gas Resources
5.1 China has Exploitable Shale Gas Reserves of 25.1 Trillion Cubic Meters
5.1.1 Sichuan is the Most Explored Shale Gas Basin in China
5.1.2 China and the US Launched Shale Gas Resource Initiative in 2009
5.1.3 China has Announced a Five-year Shale Gas Development Plan in March 2012
5.1.4 CNPC and Sinopec Lead the Way for Development of Shale Gas Resources in China
5.1.5 Challenges for the Development of Shale Gas Resources in China
6 China will Increase Production from Coalbed Methane, Sour and Tight Gas to Meet Increasing Natural Gas Demand In the Country
6.1 China has the Third -largest Coalbed Methane Reserves in World
6.1.1 China Plans to Produce 30 Billion Cubic Meters of CBM by 2015
6.1.2 Challenges for the Development of CBM in China
6.2 China is also Developing Sour and Tight Gas Reserves to Meet Increasing Demand for Natural Gas
6.2.1 Changbei is an Important Tight Gas Field in China
6.2.2 Southern China has Abundant Sour Gas Reserves
7 Chinese NOCs are Investing in Overseas Natural Gas Assets to Ensure Stable Supply of Natural Gas
7.1 CNOOC has Natural Gas Production Assets in Asia, South America and Oceania
7.2 CNOOC Purchased 33.3% Interest in the Niobrara Shale from Chesapeake Energy for $1.3 Billion
7.3 PetroChina Announced Plans to Acquire Additional Natural Gas Assets to Increase its Overseas Production
7.4 Sinopec Announced Plans to Acquire All of its Parent’s Overseas Assets in March 2012
8 China will Add New Cross-country Gas Pipeline Capacity to Increase Natural Gas Imports
8.1 Several Cross-country Natural Gas Pipelines are Being Constructed to Increase Natural Gas Imports to China
8.1.1 Kazakhstan-China Gas Pipeline
8.1.2 Myanmar-China Gas Pipeline
8.1.3 Uzbekistan-China Gas Pipeline
8.1.4 Altai Gas Pipeline
9 China is Building LNG Regasification Terminals for Greater Natural Gas Imports
9.1 Nine Regasification Terminals are Scheduled to Start Operations in China during the 2012-2016 Period
9.1.1 Tianjin LNG Terminal
9.1.2 Zhuhai LNG Terminal
9.1.3 Tangshan LNG Terminal
9.1.4 Hainan LNG Terminal
9.1.5 Qingdao LNG Terminal
10 Appendix
10.1 Market Definition
10.2 Abbreviations
10.3 Sources
10.4 Methodology
10.4.1 Coverage
10.4.2 Secondary Research
10.4.3 Primary Research
10.4.4 Expert Panel Validation
10.5 Contact Us
10.6 Disclaimer

1.1 List of Tables
Table 1: Natural Gas Industry, China, LNG Imports to China by Source Country, bcm, 2010
Table 2: Comparison of the Emissions of Natural Gas Fired Combined Cycle Power Plants with Pulverized Coal Supercritical Power Plants, Tons/Year, 2007
Table 3: Comparison of Energy Content- (Gross Heating Value) of Diesel, Gasoline, CNG, LNG and LPG, 2012
Table 4: Natural Gas Industry, China, Production from Major Fields, MMcm, 2011
Table 5: Shale Gas Industry, China, Key Data of Sichuan Basin and Tarim Basin, 2012
Table 6: CBM Industry, China, Forecast of Discovery of New Proven CBM Reserves for Select Provinces, bcm, 2012-2013
Table 7: CBM Industry, China, Forecast of Annual Ground CBM Production for Select Provinces, bcm, 2012-2015
Table 8: Natural Gas Industry, China, CNOOC’s Net Natural Gas Production and Net Proved Natural Gas Reserves, 2011
Table 9: Natural Gas Industry, China, Select CNOOC Deals to Strengthen its Overseas Natural Gas Operations, 2008-2011
Table 10: Natural Gas Industry, China, Select PetroChina Deals to Strengthen its Overseas Natural Gas Operations, 2009-2012
Table 11: Natural Gas Industry, China, Select China Petrochemical Corporation and its Subsidiaries Deals, 2010-2011
Table 12: Natural Gas Industry, China, Snapshot of the Phase II of the Kazakhstan-China Gas Pipeline, 2012
Table 13: Natural Gas Industry, China, Snapshot of the Myanmar-China Gas Pipeline, 2012
Table 14: Natural Gas Industry, China, Snapshot of the Altai Gas Pipeline, 2012
Table 15: Natural Gas Industry, China, Snapshot of the Tianjin LNG Terminal, 2012
Table 16: Natural Gas Industry, China, Snapshot of the Zhuhai LNG Terminal, 2012
Table 17: Natural Gas Industry, China, Snapshot of the Tangshan LNG Terminal, 2012
Table 18: Natural Gas Industry, China, Snapshot of the Hainan LNG Terminal, 2012
Table 19: Natural Gas Industry, China, Snapshot of the Qingdao LNG Terminal, 2012

1.2 List of Figures
Figure 1: Energy Industry, China, Comparison of China’s Energy Mix, %, 2000 and 2010
Figure 2: Natural Gas Industry, China, Distribution of Natural Gas Resources, 2010
Figure 3: Natural Gas Industry, China, Projected Natural Gas Consumption, bcm, 2011-2020
Figure 4: Natural Gas Industry, China, Natural Gas Consumption in China by End-use Category, %, 2010
Figure 5: Natural Gas Industry, China, Projected Number of Natural Gas-fueled Vehicles in China, Million, 2012
Figure 6: Natural Gas Industry, China, Projected Increase in Production of Natural Gas from Conventional Natural Gas Reserves, bcf, 2011-2020
Figure 7: South China Sea, Location Map, 2012
Figure 8: South China Sea, Location of Liwan 3-1 and Liuhua 34-2 Gas Fields, 2012
Figure 9: South China Sea, Ownership Claims by Littoral Countries, 2012
Figure 10: Shale Gas Industry, China, Location of Major Shale Gas Reserves and Natural Gas Pipelines, 2012
Figure 11: Shale Gas Industry, China, Prospective Areas in the Lower Silurian Shale, 2012
Figure 12: Shale Gas Industry, China, Prospective Areas in the Lower Cambrian Shale, 2012
Figure 13: Shale Gas Industry, China, Potential of Ordovician Shales in the Tarim Basin, 2012
Figure 14: Shale Gas Industry, China, Potential of Cambrian Shales in the Tarim Basin, 2012
Figure 15: Shale Gas Industry, China, Central Depression, Wulungu and the North Tianshan Foreland Depression in the Junggar Basin, 2012
Figure 16: Shale Gas Industry, China, Location of the Turpan-Hami Basin, 2012
Figure 17: Shale Gas Industry, China, Location of the Songliao Basin, 2012
Figure 18: Shale Gas Industry, China, China’s Five-step Approach to Reach the Set Milestones in the Five-year Shale Gas Development Plan, 2012
Figure 19: Shale Gas Industry, China, Depletion of Ground Water Levels in China, 2011
Figure 20: Tight Gas Industry, China, Location of Jinqiu Block in Sichuan Province, 2012
Figure 21: Tight Gas Industry, China, Location of Sulige Field in Inner Mongolia , 2012
Figure 22: Natural Gas Industry, The US, Location of the Niobrara Shale, 2012
Figure 23: Natural Gas Industry, China, PetroChina’s Upstream Locations Across the World, 2011
Figure 24: Natural Gas Industry, China, Planned International Natural Gas Pipelines, 2011
Figure 25: Natural Gas Industry, China, Projected Increase in Imports of Natural Gas from Pipelines, bcf, 2011-2020
Figure 26: Natural Gas Industry, China, Route of the Myanmar-China Gas Pipeline, 2011
Figure 27: Natural Gas Industry, China, Route of the Central Asia-China Gas Pipeline, 2012
Figure 28: Natural Gas Industry, China, Route of the Altai Gas Pipeline, 2012
Figure 29: Natural Gas Industry, China, Locations of the Planned/Under-construction LNG Terminals, 2012
Figure 30: Natural Gas Industry, China, Projected Increase in LNG Imports, bcf, 2011-2020
Figure 31: Natural Gas Industry, China, Location of Tianjin LNG Terminal, 2012
Figure 32: Natural Gas Industry, China, Location of Zhuhai LNG Terminal, 2012
Figure 33: Natural Gas Industry, China, Location of Tangshan LNG Terminal, 2012
Figure 34: Natural Gas Industry, China, Location of Hainan LNG Terminal, 2012
Figure 35: Natural Gas Industry, China, Location of Qingdao LNG Terminal, 2012

China to Increase Gas Imports and Production to Meet Ballooning Demand

With China’s natural gas consumption set to almost treble over the next eight years, the Asian giant will draw from all available sources to keep up with demand, expects energy industry analysts GlobalData.

According to the company’s latest research*, China’s natural gas consumption was 131.7 billion cubic meters (bcm) in 2011, already a steep rise from the 2000 figure of 24.5bcm. However, consumption levels are predicted to soar even higher to reach 375bcm by 2020, thanks to the country’s desire to increase share of natural gas in its energy mix.

China has substantial natural gas reserves of its own, but demand has already outstripped production, making imports essential. In 2011, China consumed approximately 131.7bcm of natural gas, though it only produced 100.9bcm – a disparity that will only grow in the future.

Accordingly, major Chinese NOCs such as China Petrochemical Corporation and its subsidiary China Petroleum & Chemical Corporation (Sinopec), China National Petroleum Corporation (CNPC) and its subsidiary PetroChina Company Limited (PetroChina), and China National Offshore Oil Corporation (CNOOC) are actively involved in the partial or full acquisition of overseas assets in an attempt to guarantee long-term national gas security.

The importation of Liquefied Natural Gas (LNG) is also set to be an important strategy in fulfilling China’s natural gas needs. In 1998 it approved its first LNG project in the Guangdong province to meet the energy shortages in the country’s south-eastern coastal area.

By the end of 2011, five LNG terminals were operating in China with a total regasification capacity of approximately 1 trillion cubic feet (tcf). This will climb to 2.8tcf by the end of 2016 at an Annual Average Growth Rate (AAGR) of 19.7%, due to the introduction of a further 11 terminals.

In March of this year, the Chinese government announced a new shale gas development plan, one of the stated aims of which is to produce 6.5bcm of natural gas by 2015. The government also announced that the country has onshore shale gas reserves of 134.4tcm and exploitable shale gas reserves of 25.1tcm (excluding the Qingzang Plateau area in the Tibet region) – a declaration that confirms China as one of the largest holders of shale gas reserves in the world.

Previously in December 2011, China stated the aim to produce 30bcm of Coalbed Methane (CBM) by 2015. 16bcm of this is expected to come from ground-based projects and the remaining 14bcm from coal mine projects.

* Increasing Natural Gas Demand in China - Diversification of Gas Sources to Ensure Future Supply

This report analyzes China’s strategy to meet increasing natural gas demand in the country. It also provides information about China’s efforts to explore new conventional and unconventional natural gas reserves and increase production from the existing reserves.

This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.

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