Low­ers rise in gas use to 9 per­cent

China Daily (Canada) - - BUSINESS -

Due to China’s rapid eco­nomic growth and en­vi­ron­men­tal pro­tec­tion ef­forts, nat­u­ral gas de­mand has in­creased in re­cent years.

Con­sump­tion growth ex­ceeded 10 per­cent in 2007. By 2011, the ex­pan­sion rate had more than dou­bled to some 20 per­cent, which pushed up im­ports.

Even last year, de­mand was still ex­pand­ing rel­a­tively rapidly. China used 168 bcm of nat­u­ral gas in 2013 with an­nual growth of 13.9 per­cent. Im­ports ac­counted for more than 30 per­cent of the mar­ket for the first time in 2013.

But con­sump­tion growth has slowed in tan­dem with weaker eco­nomic ex­pan­sion.

Ac­cord­ing to the Na­tional De­vel­op­ment and Re­form Com­mis­sion, the top eco­nomic plan­ner, China used 63.2 bcm of nat­u­ral gas in the first half of this year, up 7.5 per­cent year-on-year.

Yang Lei, deputy di­rec­tor of the oil and gas depart­ment at the Na­tional En­ergy Ad­min­is­tra­tion, said that China needs to es­tab­lish a nat­u­ral gas trad­ing mar­ket.

Wang Zhi­gang, se­nior vi­cepres­i­dent of China Pe­tro­leum & Chem­i­cal Corp (Sinopec), said that the na­tion’s gas con­sump­tion im­prov­ing slows.

Ac­cord­ing toWang, Sinopec has “am­bi­tious” shale gas de­vel­op­ment plans for the 13th Five-Year Plan pe­riod. It aims to achieve an­nual out­put of 10 bcm by 2020.

Tu Jian­jun, China pro­gram man­ager of the In­ter­na­tional En­ergy Agency, said it is ur­gent for China to es­tab­lish an in­flu­en­tial nat­u­ral gas trad­ing cen­ter.

“The coun­try’s nat­u­ral gas pric­ing mech­a­nism should be im­proved as well to re­flect the di­ver­si­fi­ca­tion of the coun­try’s gas sup­plies,” he said.

struc­ture is as its growth

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