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Gas industry

China's CNPC to Invest Over 100 Billion Yuan in Natural Gas Depots

Strategic Insights

— 1 min read

China's largest oil and gas producer, China National Petroleum Corporation (CNPC), is planning to spend over 100 billion yuan on building natural gas depots in the next five years, aiming to increase storage capacity from 1.8 billion cubic meters to 10 billion cubic meters by 2015. The construction of natural gas storages is expected to help balance gas supply and demand during peak and slack seasons, particularly in regions such as the Yangtze River Delta, coastal areas in southeast China, central and southern China, and the Bohai-rim area, which are projected to account for 65% of the country's total consumption by 2015 and 70% by 2030.

Key Takeaways:

  • CNPC plans to invest over 100 billion yuan in building natural gas depots from 2011 to 2015.
  • The company's gas depots under construction are mainly located in central China's Henan province, north China, south China's Jiangsu province, southwest China's Sichuan province, and northeast China.
  • CNPC aims to expand its gas storage capacity from 1.8 billion cubic meters to 10 billion cubic meters by 2015.
  • The company plans to build six underground natural gas storages with a combined working capacity of 1.5 billion cubic meters in Dagang, Tianjin.
  • Initial preparations have been made for the construction of underground gas storages in Erdos and Sichuan Basin.
  • The construction of natural gas storages will help China balance gas supply and demand during peak and slack seasons.
  • The major consumer regions of natural gas in China by 2015 and 2030 are the Yangtze River Delta, coastal areas in southeast China, central and southern China, and the Bohai-rim area.

Statistics:

*

* CNPC's planned investment in natural gas depots: Over 100 billion yuan

* Current gas storage capacity: 1.8 billion cubic meters

* Targeted gas storage capacity by 2015: 10 billion cubic meters

* Percentage of total gas consumption in China accounted for by the Yangtze River Delta, coastal areas in southeast China, central and southern China, and the Bohai-rim area by 2015: 65%

* Percentage of total gas consumption in China accounted for by the same regions by 2030: 70%

* Number of underground natural gas storages planned to be built in Dagang, Tianjin: Six

* Combined working capacity of underground natural gas storages in Dagang, Tianjin: 1.5 billion cubic meters

Sources:

  • Caijin g.com.cn
  • Wu Xiaobo, wuxb@xinhua.org
  • XINHUA NEWS AGENCY

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