China Stepping Up Gas Development and Utilization

China plans to double its gas production capacity to 30 billion cubic meters by 2005 as part of a major strategy to develop energy resources.

Experts estimate that China's gas production capacity will reach 100 billion cubic meters by 2020, equivalent to 100 million tons of crude oil. By then, gas utilization in the country's energy structure will be enhanced to eight percent from the present two percent.

China's gas production capacity has huge potential, the experts say. Through years of vigorous development, three large-scale gas production areas have taken shape in the Shaanxi-Gansu-Ningxia region and the Xinjiang Uygur Autonomous Region in the northwest and Sichuan Province in the southwest.

In the central part of the Shaanxi-Gansu-Ningxia region, total gas reserves of 230 billion cubic meters have been verified. Total gas reserves of 160 billion cubic meters have also been confirmed in the eastern part of Sichuan. While in Xinjiang, total gas reserves of around 200 billion cubic meters have been located, in addition to the discovery of a group of new gas-bearing structures.

Moreover, in the Sebei area of northwest China's Qinghai Province, a large gas field with proven reserves of 50 billion cubic meters has been identified.

China has vast markets for gas utilization, say the experts, adding that the country's annual gas utilization will top 100 billion cubic meters simply by fueling 80 percent of the oil- fueled large enterprises with gas, half of the country's thermal power generators, and 80 percent of its medium-size cities.

They also stress the importance of giving priority to developing gas pipelines. Recently, China completed a long- distance pipeline extending from Shaanxi Province in the northwest to Beijing, and construction of other major pipelines in eastern, northern, and northeastern parts of the country, as well as in the delta areas of the Yangtze River, is now under consideration.