Energy Conversion and Financial Overview
China Natural Gas Industry Overview
PRC Government's Commitment to Developing Clean Energy
China's plan to achieve 40-45% reduction in carbon dioxide
emission per unit of GDP by 2020 is driving national energy
consumption towards cleaner fuels such as natural gas
In connection with the 12th Five-year Plan, the PRC government
targets to increase the natural gas portion of total energy
consumption from 3.7% (100 bcm) in 2010 to 7.5% (230 bcm) by
2015, with continuous expansion of natural gas infrastructure
The PRC government has also been focused on the development of
a nationwide gas distribution and delivery system and several
cross-border pipelines to mitigate the geographical mismatch
between gas demand and supply. As a result, domestic natural gas
supply and consumption will increase significantly
ENN 新奥
4%
8%
18%
17%
1%
7%
1%
Double the share
8%
of gas
3%
consumption
within 5 years
71%
63%
2010
by 2015
Coal Other Hydro Nuclear Oil Gas
Low Natural Gas Penetration Rate (1) in China
Currently, the natural gas consumption in total energy
consumption of China is merely 5.1%, substantially lower
than the world average penetration rate of 23.7%
The low penetration rate provides sufficient room for China
to increase its national gas consumption going forward,
given the country's continuous shift in energy structure. This
will further drive the need for piped natural gas
infrastructure investment
-
59.9% 53.2%
UK
US
Canada
Japan
Germany
Indonesia
Australia
36.4% 32.9% 29.6% 28.0% 22.2% 23.2% 20.5% 13.9% 8.6% 7.8%
3% 5.1%1
HK
World Average:
23.7%
India
Chira
Iran
Russia
Italy
Source: Company filings, BP Statistical Review of World Energy June 2014.
(1) Note: "Natural Gas Penetration Rate" is defined as natural gas consumption volume as a percentage of total primary energy consumption.
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