China's Anti-Coal Measures See Gas Consumption Leap 18.9%
Liao Shumin
DATE:  Dec 18 2017
/ SOURCE:  Yicai
China's Anti-Coal Measures See Gas Consumption Leap 18.9% China's Anti-Coal Measures See Gas Consumption Leap 18.9%

(Yicai Global) Dec. 18 -- China's coal-to-gas reform and rising demand for natural gas in the industrial, power and chemical sectors saw gas consumption growth in the country leap 12 percentage points annually during the 11 months through November.

Natural gas consumption increased by 18.9 percent to 209.7 billion cubic meters, per data released by the National Development and Reform Commission in a press briefing today. The country produced 10.5 percent more gas than last year at 133.8 billion cubic meters, while the volume of imported gas soared 28.9 percent to 81.7 billion cubic meters.

Northern China struggles desperately with pollution and hopes to cut back on coal use to ease smog. The average concentration of PM2.5 in 28 northern Chinese cities ranged between 52 and 87 micrograms per cubic meter during October and November, the Ministry of Environmental Protection said on Dec. 11, though northern regions are on track to meet pollution-beating targets.

PM2.5 is particulate matter with a diameter of less than 2.5 micrometers.

The heating season in northern regions and fluctuations in natural gas production have tested the reliability of China's gas supply. The commission worked with PetroChina Co. [SHA:601857; HKG:0857; NYSE:PTR], China Petroleum & Chemical Corp. [SHA:600028; HKG:0386; NYSE:SNP], China National Offshore Oil Corp. and other major gas producers to ensure consistent residential supplies.

The producers ramped up development and operations at its gas plants and supporting facilities to maximize production. Upstream fields have been running at full steam, and overall production has risen by 3.7 million cubic meters a day so far this month. Volumes are set to increase by another 3.3 million cubic meters a day in January.

The country has also upped procurement of natural gas. China will import about 24.5 billion cubic meters of gas this year and early next year for an average supply of 162 million cubic meters a day.

Beijing also rolled out a south-to-north gas diversion program to send oil and gas from Fujian, Guangdong and other southern provinces to North China during the winter heating season. So far this month, southern regions have sent up about 15 million cubic meters a day.

Northern power plants also cut gas consumption to non-residential users, which affected chemical, methanol and liquefaction plants and fertilizer producers.

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Keywords:   Natural Gas,Coal,ENERGY,PetroChina,SINOPEC,China Petroleum & Chemical