(MENAFN- Kuwait News Agency (KUNA)) China's dependency on natural gas imports will continue to increase as the country is trying to reduce its fossil fuel consumption and improve air quality, the state-run China Daily reported Wednesday.
"Up to 32 percent of China's natural gas use this year will depend on imports," Wang Xiaokun, an analyst at Sublime China Information Group Co Ltd, was quoted as saying.
China's dependency on foreign natural gas supplies will continue to grow because the output of existing domestic gas fields is decreasing, while the country's demand is rapidly increasing," she said.
According to China National Petroleum Corp's institute, the nation imported 42.8 billion cubic meters of natural gas in 2012, accounting for 29 percent of the country's total gas consumption.
The institute estimated that China will import 53 billion cubic meters of natural gas this year, up 23.8 percent year-on-year.
As the country's biggest natural gas producer and importer, China National Petroleum Corp will continue to boost natural gas imports, with more investments in pipelines and liquefied natural gas projects, said Zhou Jiping, chairman of the company.
In addition to imports, the Chinese government is also making efforts to support the development of unconventional natural gas projects to increase domestic output and ease the supply shortage.
"The Chinese government encourages the development of unconventional gas projects, including shale gas, coal bed methane gas and coal gas to meet the soaring domestic demand," said Wang. "However, technology obstacles and environmental issues will be the major difficulties for the development of these resources." Shale gas exploration projects require lots of fresh water, which the country doesn't have in many areas where the shale gas reserves are located, said Wang.
Another downside is that exploration projects can endanger the water quality.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.