Gas Supply Security and Business Achievements
ENN
China Natural Gas Industry Overview (Contd
Natural Gas Consumption
-
Natural gas consumption in China has grown from 2.4 bcf/d in 2000 to 10.6 bcf/d in
2010, representing a CAGR of 16.0%
The main driver behind the growth in natural gas consumption is the growth in
China's GDP since 2000
The continuing growth of China's GDP and increasing portion of natural gas in the
total energy consumption will drive the increasing demand for natural gas in China
in the future
China Natural Gas Supply and Demand
Natural Gas Production
Natural gas production in China has increased from 2.6 bcf/d in 2000 to 9.1 bcf/d in
2010, representing a CAGR of 13.3%
To meet the growing demand for natural gas, apart from increasing domestic gas
production, China is aggressively importing long-distance piped gas from nearby gas-
rich areas such as central Asia and Myanmar, as well as LNG from Qatar, Australia,
and Malaysia
Production/
Consumption
(bcf/d)
10.0
8.0
1.6
0.8
6.0
4.0
0.0
(0.8)
2.0
0.0
(1.6)
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Production
Consumption
Surplus/(Deficit)
According to the 12th Five-year Plan, natural gas consumption in China is expected to reach 25.1 bcf/d in 2015, representing a CAGR of 18.9% from 2010
On the supply side, natural gas production is expected to reach 14.5 bcf/d in 2015, representing a CAGR of 9.1% from 2010
The gap between supply and demand will be satisfied through imported natural gas
The NDRC has taken efforts to bring domestic gas prices more in line with international prices by resorting to price increases
Surplus/(Deficit)
(bcf/d)
China has invested substantially in developing a nationwide natural gas network to facilitate the bridging between consumption and production, with total installed pipeline capacity
growing at a double-digit rate nearly each year since 2003
Trunk line construction in China has also ramped up rapidly in recent years
It is expected that pipeline construction in China will continue to be driven by natural gas going forward
Currently, around 10 natural gas pipeline network projects are under construction (including the West-East Pipelines Project) or in the planning stage
Source: Company filings, BP Statistical Review of World Energy.
*Note: "bcf/d" denotes billion cubic feet per day.
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