Research Report on China's Natural Gas Industry Chain, 2013-2017
Natural gas is a kind of energy that is quite clean and environment friendly. Coal is the major primary energy consumed in China, so the increasing consumption of natural gas is helpful to optimize the energy structure. The propor…
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DescriptionNatural gas is a kind of energy that is quite clean and environment friendly. Coal is the major primary energy consumed in China, so the increasing consumption of natural gas is helpful to optimize the energy structure. The proportions of charcoal and petroleum in the national consumption structure of primary energy are about 70% and 20% respectively while that of natural gas is only around 5% (the global average level is 24%). The high consumption of coal will make serious pollution to the environment and lower the energy efficiency. Under the trend of advocating energy conservation and environment protection, the development of natural gas is inevitable. The proportion of natural gas consumption in the national primary energy consumption will sharply increase in the future.
In China, natural gas is mainly used as civil fuel and industry fuel with the merits of high calorific value, low cost and pollution. Meanwhile, natural gas is also used as a chemical raw material in chemical industry. It is mainly applied in producing chemical products like synthetic ammonia and methanol. In recent years, the consumption volume of natural gas grows rapidly in manufacturing industry, electric power industry and transportation industry.
Natural gas supply mainly comes from domestic production, imported by pipeline and liquefying in China. In 2012, the output volume and import volume of natural gas was 107.7 billion cubic meters and 42.5 billion cubic meters respectively in China, increasing by 6.5% YOY and 13% YOY respectively. Meanwhile, the apparent consumption volume was 147.1 billion cubic meters, increasing by 13% YOY.(According to CRI's research) According to the current technology level, domestic natural gas mainly comes from conventional gas field in China while other unconventional natural gas with great potential is in the stage of initial exploration, technology research or small-scale production.
In 2012, the import volume of LNG reached 15 million tons. The CAGR was 50% during 2008-2012.(According to CRI's research) The following factors promote the growth: 1.in the past few years, China focused on establishing basic LNG facilities such as LNG receiving stations, which greatly improved the import capacity of LNG; 2. in recent years, besides conventional LNG exporters like Australia, the output volume of some unconventional LNG exporters like Qatar increases every year. It is predicted that the import volume of LNG will keep increasing to meet the market demand in the next few years.
Natural gas industry chain in this report is classified into upstream industry, midstream industry and downstream industry that are responsible for the production, transportation and distribution of natural gas.
Upstream industry: The upstream industry involves the establishment and operation of gas fields, gas receiving stations and natural gas manufacturing plants to excavate, receive or produce natural gas then sell it.
Midstream industry: midstream industry is responsible for establishing and operating long pipeline networks, and transporting natural gas to remote regions, the terminal distributors and terminal users, and getting some transportation fee.
Downstream industry: Downstream industry is responsible for establishing and operating pipeline networks, then distributing natural gas to the terminal users.
The power and operation models of enterprises in natural gas industry are different from each other, which forms various competition statuses in return.
Upstream competition status: the upstream enterprises are a few large-scale enterprises including CNPC, Sinopec and CNOOC. Through exploiting and establishing gas resource points like gas fields, LNG receiving stations and natural gas manufacturing plants, they control quite a large amount of gas resources. So the upstream industry has the feature of oligopoly.
Midstream competition status: depending on their strength, the large upstream enterprises involve in establishing key pipeline networks and they even involve in the establishment of provincial pipeline networks in some regions. As a result, they have quite powerful control on the midstream industry. Meanwhile, some provincial pipeline network companies also form certain regional monopoly in the midstream industry.
Downstream competition status: downstream enterprises are mainly gas distributors who supply gas to the terminal users by establishing terminal pipeline networks, so they have advantages in monopolizing terminal pipeline networks. Some urban gas companies strengthen their influence and control on gas resources through involving in the establishment of upstream gas resource points.
Generally speaking, upstream natural gas industry is resource-based and its major expansion model is to get high-quality gas resources at low prices; while the downstream industry involves in pipeline networks, so it has obvious characteristics of natural monopoly and public utility. Due to the strictly regulated price, the major expansion model is to construct pipelines and expand users in downstream industry. According to the current development status of natural gas industry in China, many enterprises trend to expand in the industry chain, so their boundaries becomes increasingly vague.
The reserves of conventional natural gas and unconventional natural gas are extremely abundant in China. According to the third national evaluation on petroleum & natural gas resources from China Ministry of Land and Resources, the total resource volume of natural gas is 108~119 trillion cubic meters, among which the resource volume of unconventional natural gas (73~76 trillion cubic meters) is 1.8~2.1 times that of conventional natural gas (35~43 trillion cubic meters). Meanwhile, the total resource volume of shale gas is 24.5 trillion cubic meters with huge exploration potential, accounting for 33% of the total energy resource volume.
At present, the supply and demand of natural gas is still unbalanced in China. Gas resource is the major factor that restricts the growth of natural gas consumption. Once the resource is sufficient, the consumption volume of natural gas will keep increasing constantly.
It is predicted by CRI that the supply volume of natural gas will reach 300 billion cubic meters by 2015 and it is likely to reach 670 billion cubic meters (850 million tons of standard coal) by 2020. According to conservative estimates by CRI, Chinese government will strengthen unconventional gas import if the exploitation does not go well. Regardless of the quality of domestic natural gas, it is predicted that natural gas will be dominant in primary energy in China by 2020. Meanwhile, the entire industry chain of natural gas will also achieve great development. The development models of natural gas industry will gradually convert from resource-driven model to demand-pulled model at the same time.
As for many enterprises in natural gas industry, there are many investment opportunities in the coming years.
Through this report, the readers can acquire the following information:
-Supply and Demand of Natural Gas in China
-Operation Status of Natural Gas Industry in China
-Import and Export of Natural Gas in China
-Forecast on Natural Gas Industry in China
The Following Enterprises and People are Recommended to Purchase This Report:
-Natural Gas Production/Trade Enterprises
-Enterprises related to Natural Gas Industry
-Investors and Research Institutes Concerned About Natural Gas Industry in China
Table of Contents
1 Overview on Natural Gas Industry in China
1.1 China Energy Consumption Structure
1.2 Natural Gas Classification
1.2.1 Conventional Natural Gas
1.2.2 Unconventional Natural Gas
1.3 Advantages of Natural Gas over Petroleum & Coal
1.4 Structure of Natural Gas Industry Chain
2 Supply and Demand of Natural Gas in China, 2008-2012
2.1 Supply Capacity of Natural Gas in China
2.1.1 Analysis on Natural Gas Reserves
2.1.2 Analysis on Production Capacity of Natural Gas
2.2 Supply Resources of Natural Gas in China
2.2.1 Natural Gas Produced in China
2.2.2 Natural Gas Imported by Pipelines
2.2.3 Natural Gas Imported by Liquefaction
2.3 Natural Gas Demand in China
3 Upstream Industries and Major Enterprises of Natural Gas in China, 2008-2012
3.1 Natural Gas Exploitation Industry
3.2 Enterprises Providing Oil & Gas Equipment and Related Services
3.2.1 Yantai Jereh Oilfield Services Group Co., Ltd.
3.2.2 LandOcean Energy Services Co., Ltd.
3.2.3 GI Technologies Co., Ltd.
3.2.4 Beijing Oil HBP Group
3.3 Enterprises Providing Oil & Gas Equipment
3.3.1 Kingdream Public Limited Company
3.3.2 Shanghai SK Petroleum & Chemical Equipment Corporation Ltd.
3.4 Enterprises Providing Services Concerning Natural Gas Exploitation
3.4.1 Xiaan Tong Yuan Petroleum &Technology Co., Ltd.
3.4.2 Sichuan Renzhi Oilfield Technology Services Co., Ltd.
3.4.3 Shandong Polymer Bio-chemicals Co., Ltd.
4 Midstream Industries of Natural Gas in China, 2008-2012
4.1 Pipeline Transport
4.2 Enterprises Providing Pipe Materials of Natural Gas Pipeline Networks
4.2.1 Jiangsu Yulong Steel Pipe Co., Ltd.
4.2.2 Zhejiang Kingland Pipeline and Technologies Co., Ltd.
4.3 Enterprises Providing Natural Gas Storage Tanks
5 Downstream Industries of Natural Gas in China, 2008-2012
5.1 Demand Structure of Natural Gas in China
5.2 Residential Consumption of Natural Gas
5.3 Major Enterprises Generating Electricity with Natural Gas
5.3.1 Hangzhou Boiler Group General Equipment Co., Ltd.
5.3.2 Wuxi Huaguang Boiler Co., Ltd.
5.4 Major Enterprises of LNG Vehicle Industry and Gas Station Industry
5.4.1 Zhangjiagang Furui Special Equipment Co., Ltd.
5.4.2 Anhui Ankai Automobile Co., Ltd. (with New Expanded LNG Passenger Vehicles)
5.5 Natural Gas & Chemical Enterprise
5.5.1 Sichuan Meifeng Chemical Industry Co., Ltd.
5.5.2 Zhejiang Jiangshan Chemical Co., Ltd.
5.5.3 Zhejiang Haiyue Co., Ltd.
5.5.4 Zibo Qixiang Tengda Chemical Co., Ltd.
5.6 Major Enterprises Providing Natural Gas and Subsidiary Products
5.6.1 Guanghui Energy Co., Ltd.
5.6.2 Xinjiang Haoyuan Natural Gas Co., Ltd.
5.6.3 Shenzhen Gas Corporation Ltd.
5.6.4 Jinhong Energy Co., Ltd.
5.6.5 Shandong Shengli Co., Ltd.
5.6.6 Zhejiang Jinka Tech Co., Ltd.
6 Forecast on China Natural Gas Industry, 2013-2017
6.1 Influencing Factors on Natural Gas Development
6.1.1 Industry Policies
6.1.2 Economy Environment
6.2 Forecast on Natural Gas Production
6.3 Forecast on Natural Gas Consumption
6.4 Recommendations on Investment and Development of China Natural Gas Industry
Chart China Energy Consumption Structure, 2008-2012
Chart Output Volume and Import Volume of Petroleum in China, 2008-2012
Chart Natural Gas Reserves in China, 2002-2012
Chart Output Volume Structure of Natural Gas by Region in China, 2012
Chart Output Volume of Natural Gas in China, 2001-2012
Chart Proportion of Natural Gas Consumption Volume in Total Energy Consumption Volume in China, 2001-2012
Chart Consumption Structure of Natural Gas by Region in China, 2012
Chart New-added Production Capacity of Natural Gas Exploitation in China, 2001-2011
Chart Fixed Asset Investment of Petroleum & Natural Gas Exploitation Industry in China, 2001-2012
Chart Fixed Asset Investment of Petroleum & Natural Gas Exploitation Industry in China, 2012
Chart Sales Revenue and Net Profit of LandOcean Energy Services Co., Ltd., 2008-2012
Chart Structure of Residential Energy Consumption in China, 2006-2011
Chart Consumption Volume Per Capita of Natural Gas in China, 2006-2012
Chart Sales Revenue and Net Profit of Shenzhen Gas Corporation Ltd., 2008-2012
Chart Forecast on Output Volume of Natural Gas in China, 2013-2017
Chart Forecast on Consumption Volume of Natural Gas in China, 2013-2017