The development of China’s coal-to-gas industry will become increasingly stable

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The development of China’s coal-to-gas industry will become more stable. Author/Source: Date: 2018-06-01 Clicks: 27 According to statistics from the **Development and Reform Commission, in April, China’s natural gas production amounted to 12.1 billion cubic meters, representing a year-on-year increase of 14.4%； Natural gas imports amounted to 6.4 billion cubic meters, an increase of 22.5% ； Natural gas consumption was 16.9 billion cubic meters, an increase of 21.7%. It is evident that China has a huge demand for natural gas, and the supply gap needs to be addressed urgently. “Given the slow growth rate of conventional natural gas, apart from relying on imports to alleviate supply pressures, the development of unconventional natural gas is an effective way to fill the supply gap. Coal-to-gas technology features a short process route and high thermal energy conversion efficiency, making it a relatively ideal option. ”Sha Wenbo, an analyst at Zhongyu Information, told reporters. Four projects have already been put into operation. Statistical data show that between 2015 and 2017, the growth rate of domestic natural gas production was between 7.7% and 8.1%, while the growth rate of consumption rose to between 12.5% and 15.4%. Shawenbo pointed out that in the face of this practical challenge, and considering China’s fossil fuel structure characterized by abundant coal, a shortage of oil, and limited gas reserves, the abundant coal resources can be utilized as an important source of supply for natural gas. Reporters have noted that since 2012, our country has consciously supported the development of the coal-to-gas industry. Against the backdrop of high international oil prices and low domestic coal prices, coal-to-gas production in China currently offers good economic viability; there is strong enthusiasm for developing this sector across various regions, and the coal-to-gas industry has seen some growth. Shawenbo explained that there are currently four coal-to-gas projects in operation in China, namely the Datang Keqi Coal-to-Gas Project, the Qinghua Ili Coal-to-Gas Project, the Inner Mongolia HuiNeng Coal-to-Gas Project, and the Zhejiang Energy Ili Xintian Coal-to-Gas Project. “It is understood that all the aforementioned devices are currently capable of operating normally. Due to geographical constraints and limited downstream processing capacity, the plant load at Datang Keqi and Qinghua Yili remained around 50% for extended periods of time. The operation of Inner Mongolia HuiNeng is relatively normal; the coal-based gas it produces can be sold to regions such as the Northwest and North China, and given an appropriate price difference, it can also be sent to the East China region. Zhejiang Energy was established relatively late, and its influence on the market is currently limited. ”Savinbo analyzed. Future development is expected to be more stable. Reporters noted that due to the weak overall performance of the domestic natural gas market in 2015 and 2016, apart from projects that have already been put into operation, the progress of coal-to-gas projects under construction or planned for construction has been relatively slow. However, in Savinbo’s view, following last year’s severe situation of supply falling short of demand, domestic natural gas prices have risen significantly, and market demand continues to increase; as a result, the construction pace of projects that are currently under construction or planned for construction is likely to accelerate. It is worth noting that on April 12, the groundbreaking ceremony was held for the installation work of the utility pipelines and evaporation-crystallization facilities for the 4 billion cubic meter coal-to-natural gas project operated by Datang International Fuxin Coal-to-Natural Gas Co., Ltd. “The launch of this project marked the beginning of construction on the Fuxin coal-to-natural gas project in 2018; after 8 years, work on this project resumed. ”Savinbo analyzed. “China’s huge demand for natural gas also means that coal-to-gas production has broader prospects for development, and the industry is expected to grow more steadily in the future. ”Shavinbo predicts.