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Unconventional gas production in China
Unconventional gas production in China's natural gas consumption market has developed
An increase of 30.4% compared with the last year! In August this year, China's natural gas consumption continued explosive growth. ECF international shale gas forum held in Shanghai. Industry experts say that the consumer market explosion will drive import demand to expand continuously, China's dependence on foreign natural gas will continue to rise steadily. But in terms of supply, China's unconventional gas production gradually force, the future potential of the period.

Oil and gas are short plates of energy resources structure in China. With the increasing demand for domestic energy consumption, China's dependence on imports of crude oil and natural gas has been rising steadily in recent years.

In 2016, due to the decline in domestic production and import surge, China's crude oil import dependence rose to 65.4%. China's natural gas production has maintained rapid growth, but the domestic consumer market has increased more rapidly, and the dependence on foreign countries has also shown a rising momentum. In 2016, China's dependence on natural gas imports has risen to 35%.

The national development and Reform Commission released the latest data show that this year 1 to August, China's natural gas production is 97 billion 800 million cubic meters, an increase of 10.8%; natural gas consumption is 150 billion 400 million cubic meters, an increase of 17.8%; imports of natural gas reached 57 billion cubic meters, an increase of 24.8%.

Policy and price are two main factors that affect the consumption of natural gas in China. This year, the explosion of natural gas consumption in China is related to the "coal change gas" project that has been vigorously promoted everywhere.

'2017 is the time for many large' coal-to-gas' projects, and a large number of new gas needs have sprung up, 'said Huang Qing, chief information officer of the China gas industry chain. In addition, domestic gas prices have been more economical than oil prices this summer, making natural gas consumption weak. It is expected that under the promotion of "coal change gas" and "clean energy heating", China's demand for air will be stronger this winter, and the pressure will be greater.

Experts believe that in the next few years, China's natural gas import dependency will rise further in the future. However, in recent years, the global supply of natural gas is oversupplied, and there is no need for excessive worry in China's natural gas supply security.

Zhang born, deputy director of the energy research institute of the national development and reform commission, said that China's natural gas now accounts for only about 6 percent of the energy mix. By 2020, the plan is to reach about 10%. Aim to increase to 15% by 2030. This means that China's natural gas consumption is expected to reach 700 billion cubic meters by 2030.

Globally, the demand for natural gas in developed countries in Europe and America has reached a peak, with limited growth space. By contrast, China has gradually become a major growth pole in global gas consumption. In the oversupplied international gas market, more international gas resources are expected to flow to China, and China's natural gas import options are increasingly diversified.

Huang Qing said, China's main imports of liquefied natural gas (LNG) from places such as Australia, Qatar, Malaysia, Canada, the United States also is expected to become the future important Gas source area LNG imports. However, international spot LNG price fluctuates greatly, the enterprise to go out to sea purchase should pay attention to strategy, avoid risk. This summer, for example, the average price of imported LNG in China is $5.50 per million, which usually rises to around $9 in winter.

"Currently, many international gas suppliers are optimistic about China's gas market and even want to participate in the construction of LNG terminal in China." Huang said that normally a large LNG terminal would cost between 7 billion yuan and 10 billion yuan to attract international suppliers, which would help ease capital pressure and stabilize gas sources.

At present, in the face of the huge domestic gas demand market, China's natural gas supply cannot rely on "foreign aid". In recent years, China's regular natural gas production has maintained rapid growth, and unconventional natural gas production has been growing in strength, and the potential can be expected.

Zhang Dawei, director of the center for the ministry of land and resources evaluation of mineral resources reserves, said China has reached 7.882 billion cubic meters of shale gas production in 2016, and is expected to 2017 annual output 10 billion cubic meters, after the United States, Canada, the third largest in the world. China's ChongQing PeiLing shale gas field accumulates a total of 600 billion cubic meters of geological reserves, becoming the largest shale gas field outside North America.

Zhang said that China is exploring new mechanisms of shale gas exploration and exploitation and developing a new model. This year, the Ministry of land and resources entrusted to the Guizhou provincial government organized the auction to sell an 1 page shoun block wells where the first hammer sounded the Chinese shale gas auction. Other provinces have also screened a number of shale gas exploration blocks, intends to compete for sale.

According to the "13th Five-Year" shale gas development plan, by 2020 China's shale gas and strive to achieve output of 30 billion cubic meters, in 2030 to achieve output of 80 billion to 100 billion cubic meters.

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