China's Natural Gas Dependency Increases Year-on-year

It is understood that China’s total primary energy consumption reached 3.62 billion tons of standard coal last year, an increase of 4% over 2011, and accounted for 66.4% of the total energy consumption structure, a drop of 2% from 2011; natural gas accounts for about 5.5%. Compared with 2011, it increased by 0.5%. The “12th Five-Year Plan for Energy Development” just announced also proposed that natural gas should account for 7.3% of primary energy consumption by 2015.

Even so, the proportion of natural gas consumption in China is still very low. The global average level in 2012 was 25%, and India was also around 17%. As a result, some experts had previously strongly urged that energy ** is to strengthen natural gas applications.

At present, China's imported natural gas is mainly dependent on pipelines. Due to the restrictions on transportation routes, the amount of LNG (liquefied natural gas) is not large. From the consumer side, natural gas consumption in China has grown very rapidly in recent years, and it is growing at a rate of around 15% every year. Some experts believe that under the current unclear prospects for the production of unconventional natural gas, the growth of China's natural gas consumption depends mainly on imports, which depends on the construction progress of the gas pipelines in the northeast, southwest, and northwest.

In addition, the increase in the consumption of natural gas also requires the reform of the price formation mechanism. A proper price formation mechanism can promote investment and promote the enthusiasm of companies. At present, the mechanism for the formation of natural gas prices has not yet been implemented nationwide, and the scarcity of natural gas resources cannot be reflected in the form of prices.