China Natural Gas Sector 2017/2021
A Five-Year Forecast from EMIS Insights
EXPLORE THE STATISTICS BELOW
Natural gas is gaining importance in China’s energy mix as the authorities seek to reduce the economy’s carbon intensity and improve air quality in big cities. The government aims for natural gas to meet 10% of its energy needs by 2020, up from 6% in 2016.
136.9 bcm
Natural Gas Production
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207.8 bcm
Natural Gas Consumption
To achieve this goal, investments are directed not only at raising production at conventional gas sites but also at tapping shale gas resources. China was the third largest consumer of natural gas in the world in 2016 and the sixth biggest producer. China’s natural gas sector is still largely controlled by the government although a partial liberalisation has been under way, a move the authorities hope will increase labour and capital resource efficiency.
Entry Modes
Apart from production-sharing contracts (PSCs), there are many M&A opportunities for providing gas field services as well as for finding partners in selling gas processing technologies.
Government Policy
As part of efforts to increase the share of cleaner energy resources in the country’s power mix, the government has been encouraging the development of the natural gas sector. It targets to connect 140mn more people to the gas pipeline in the period 2016-2020. Private capital in upstream activities and in the construction of LNG terminals along the eastern coastline and in southern China is encouraged.
Sector in Numbers
5.4 tcm
Proven Gas Reserves
USD 2.1bn
Foreign Direct Investments
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