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The China Energy Fund Committee, the first China-based think tank institution, released the "China Energy Focus: Natural Gas 2013" report in English for the first time. This comprehensive publication brought together leading Chinese energy experts and industry professionals from mainland China, Hong Kong, and overseas to provide an in-depth analysis of the country's natural gas sector. The report not only highlights the current state of the industry but also outlines its future development trajectory.
In New York, the China Energy Fund Committee, along with key contributors to the report, organized a seminar on the 17th to discuss the opportunities and challenges facing China’s natural gas industry. The event featured participation from geopolitical experts and scholars who provided valuable insights into the potential for enhanced energy cooperation between China and other global players.
He Zhiping, the secretary-general of the China Energy Fund Committee and the author of the report, explained that it is divided into two main sections. The first part details a series of discussions held in September 2013 with a group of Chinese energy experts on the future of natural gas development. The second section includes several analytical papers by Chinese scholars, offering a multi-faceted perspective on the growth and challenges of the natural gas industry.
He emphasized that the development of unconventional gas resources in China is still in its early stages, with significant hurdles remaining. These include the complexity of obtaining mining rights, the structure of gas pricing systems, and electricity tariffs. Addressing these issues will be crucial for the long-term sustainability of the sector.
According to the national “Twelfth Five-Year Plan,†the share of natural gas in China’s primary energy mix is expected to rise from 4.4% in 2010 to 7.5% by 2015. Annual consumption is projected to reach 230 billion cubic meters, while domestic production is anticipated to increase from 94.8 billion cubic meters in 2010 to around 176 billion cubic meters. Additionally, the number of people using natural gas is expected to grow to 250 million.
Zhang Kang, former chief engineer at the Sinopec Petroleum Exploration and Development Research Institute, highlighted recent progress in coal-to-gas development. He called for improved data collection on actual gas supply and stressed that timely economic reforms could play a decisive role in shaping the future of China’s gas industry.
The report also notes that the rapid urbanization of China’s population will continue to drive up energy demand. In this context, natural gas—being both efficient and low-carbon—is seen as a critical solution to the nation’s energy challenges.
The report was first launched in Washington, D.C., on the 16th. During the event, representatives from major multinational energy companies and research institutions discussed the current state and future outlook of China’s natural gas market.