The natural gas market develops steadily

With the rapid development of China's economy and the significant increase in social productivity, China's energy sector has undergone earth-shaking changes

2020 is the end of the 13th Five-Year Plan and the year of the 14th Five-Year Plan

1.

Since 2019, China has continued to promote the reform of natural gas marketization

(1) Reform of the upstream market of natural gas

Deepen the reform of the upstream oil and gas market, and open up the oil and gas exploration and development market in an orderly manner

From July 30, 2019, restrictions on foreign investment in China's oil and gas exploration and development fields have been further relaxed, and restrictions on oil and gas exploration and development limited to joint ventures and cooperation have been gradually lifted

Improve the unconventional natural gas subsidy policy and encourage enterprises to accelerate the development of unconventional gas

(2) Market-oriented reform of midstream natural gas

Establish a national oil and gas pipeline network company to promote the construction of a "national one network"

(3) Natural gas downstream market reform

Promote natural gas power generation and accelerate the development of transportation gas in accordance with local conditions, and continue to play the positive role of natural gas in the prevention and control of air pollution

Effective implementation of tax cuts and fee reductions, end users earnestly enjoy the reform dividends

2.

In 2019, China's natural gas production, supply, storage and marketing system has continued to improve, with significant results in increasing exploration and development efforts.

China's natural gas exploration and development efforts have been significantly increased, and both reserves and production growth have set historical records

In 2019, the country’s new proven geological reserves of natural gas were 1.

In terms of output, in 2019, the national natural gas (including unconventional gas) output reached 177.

In addition, in the first half of 2020, China's natural gas exploration efforts remain basically unchanged while production continues to grow strongly

From the perspective of consumption, China's natural gas consumption scale continued to expand in 2019, and the growth rate has slowed down
.
In 2019, the apparent consumption of natural gas was 306.
4 billion cubic meters, an increase of 8.
6% year-on-year, accounting for 8.
1% of the primary energy consumption structure, an increase of 0.
3% year-on-year
.

City gas and industrial gas are still the main sources of natural gas consumption, accounting for 37.
2% and 35.
0% of the national consumption respectively; the growth rate of chemical gas consumption has rebounded, and the growth rate of power generation gas consumption has dropped in stages
.
In terms of consumption area, East China is the region with the largest consumption in the country, with annual consumption reaching 89.
7 billion cubic meters, accounting for 29.
2% of the national consumption; followed by North China, Northwest and Southwest China, with consumption of 59.
8 billion cubic meters respectively , 39.
6 billion cubic meters and 37.
5 billion cubic meters
.
In terms of provincial consumption, 13 provinces consume more than 10 billion cubic meters of gas, of which Jiangsu exceeds 30 billion cubic meters, and Guangdong and Sichuan both exceed 20 billion cubic meters
.

In addition, according to the latest data, in the first half of 2020, natural gas consumption will still maintain a positive growth, with a year-on-year increase of about 1.
5%
.
Factors driving the positive growth of natural gas consumption include: low domestic and foreign gas prices, and the competitiveness of natural gas prices is prominent; urban gas is less affected by the epidemic, and the heating season in some northern provinces and cities has been extended; since the second quarter, the economic recovery has been obvious, driven by the resumption of work and production.
Gas consumption for industry and power generation is rising steadily
.

In terms of import and export, in 2019, China imported 96.
56 million tons of natural gas (135.
2 billion cubic meters), a year-on-year increase of 6.
9%
.
In terms of import composition, pipeline gas imports were 36.
31 million tons (equivalent to 50.
8 billion cubic meters), accounting for 37.
6%; LNG imports were 60.
25 million tons, accounting for 62.
4%
.

LNG import sources are more diversified.
Australia is the largest source of imports (29.
1 million tons), followed by Qatar (8.
63 million tons) and Malaysia (737 million tons); the proportion of LNG spot imports has further increased, with LNG spot imports of 21.
3 million tons.
It accounts for 35.
4% of total LNG imports
.
The main players in the natural gas import market have increased.
In addition to major oil and gas companies, local state-owned, private and Hong Kong-owned enterprises have imported a total of 4.
41 million tons of LNG, accounting for 7.
3% of the country's total LNG imports
.

In addition, in the first half of 2020, the structural differences in natural gas demand trends are obvious
.
First, industrial gas consumption has gradually recovered from negative growth to the level of the same period in 2019
.
In the early stage of the outbreak of the new crown epidemic, industrial gas consumption was affected to a certain extent.
Subsequently, the country implemented policies such as phased reduction of non-resident gas prices to reduce gas consumption costs for enterprises.
Industrial gas consumption has rebounded month by month.
The cumulative gas consumption from January to June has returned to 2019.
The same period of the year
.

Second, urban gas maintained steady growth
.
In the first quarter, driven by the extension of the heating season in some northern provinces and cities, urban gas continued to grow steadily; in the second quarter, the prevention and control levels were lowered successively, the floating population continued to increase, and shopping malls, restaurants, schools, etc.
gradually resumed operations.
Natural gas in the public service sector Demand has increased significantly, and the two jointly promoted a year-on-year growth of more than 10% in urban gas in the first half of the year
.

Third, the use of gas for power generation and chemical industry was relatively significantly affected by the epidemic, with a decline in the first half of the year
.

3.
Prospects of the natural gas industry during the 14th Five-Year Plan period

In the second half of 2020, facing the impact of the new crown epidemic, the development of China's natural gas industry is facing challenges, but the basic conditions and supporting factors that promote the coordinated and stable development of the natural gas industry have not changed, and the overall tone of the natural gas industry's sustained and steady development remains unchanged
.
At the same time, international natural gas supply and demand are generally loose, natural gas prices fluctuate widely at low levels, and domestic capacity to increase reserves and production has been significantly enhanced, and gas supply security capabilities have been further improved; institutional reforms continue to deepen, and industrial policies continue to improve; new industries spawned and promoted by the epidemic The continuous emergence of new models and business formats has provided favorable space for the rapid development of natural gas
.
In the second half of the year, we must adhere to the goal-oriented and problem-oriented approach to ensure the efficient and sufficient supply of natural gas in various periods to ensure the successful conclusion of the "13th Five-Year Plan"
.

Based on the "13th Five-Year Plan" and looking forward to the "14th Five-Year Plan" of the natural gas industry:

(1) Based on domestic resources, continue to actively and steadily advance natural gas exploration and development, and effectively improve the stable supply of natural gas
.

In the future, we will focus on expanding the four major oil and gas production bases in Sichuan, Xinjiang, Ordos, and the seas to promote the steady increase of conventional natural gas production and the rapid development of unconventional natural gas
.
To build a "dual enrichment gas" production base in the Sichuan Basin, which is an enrichment area for conventional natural gas and unconventional natural gas.
By increasing the development of carbonate conventional gas, tight gas, and shale gas, the production will continue to increase
.
Build a "tight gas" production base in the Ordos Basin, and promote the comprehensive exploration and development of multiple resources by increasing the intensity of tight gas development, and improve the level of resource extraction
.
Build a "deep gas" production base in Xinjiang, increase the exploration and development of deep and ultra-deep resources in piedmont areas such as the Tarim Basin, and promote the increase in natural gas reserves and production
.
Build a "deep-water gas" production base in the sea, accelerate the pace of natural gas development in the Bohai Sea, strengthen the exploration and development of deep-water resources in the Bohai Sea, the East China Sea and the northern part of the South China Sea, and further accelerate the pace of increasing reserves and production
.
Strengthen overall coordination, classified disposal, hierarchical management and control of natural gas mining rights and exploration and development activities within the ecological red line
.

(2) Accelerate the construction of pipeline networks and gas storage facilities, make efforts to make up for the shortcomings of natural gas interconnection and transmission capacity in key areas, and promote the formation of a "national network"
.

With the continuous advancement of the expansion and new construction of coastal LNG receiving stations, overseas LNG resources have been further expanded into the domestic channels; the National Oil and Gas Pipeline Network Company has been officially launched, and the formation of the "national one network" pipeline network layout has accelerated.
The southern section is accelerated, the Qingning gas pipeline is expected to be put into operation, and the ability to deploy natural gas resources from north to south is steadily strengthened; multiple measures are taken to increase gas storage capacity, compact upstream gas supply companies and national oil and gas pipeline network companies, and accelerate gas storage bases And the construction of key projects of gas storage facilities
.
Improve the coordination mechanism of sea, land, and environmental assessment for projects, and actively create conditions to promote project construction
.

(3) Continue to promote the reform of the system and mechanism to promote the high-quality development of the natural gas industry
.

During the "14th Five-Year Plan" period, natural gas development will accelerate the construction of major pipeline networks and other projects to ensure that the pipeline transportation capacity meets the needs of economic and social development
.
Further promote the process of opening up fair facilities in the oil and gas pipeline network and promote the efficiency of pipeline facilities utilization
.
Continue to unswervingly deepen the reform of the oil and gas system, promote the reform of natural gas mining rights and the reform of the national oil and gas pipeline network operation mechanism as soon as possible, and lay a solid foundation for the establishment of an efficient natural gas market system
.

China Commercial Industry Research Institute specializes in providing major research projects in the early period of the 14th Five-Year Plan, planning of major projects during the 14th Five-Year Plan, preparation of the 14th Five-Year Plan outline, and special industry plans for the 14th Five-Year Plan
.