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Journal Article

China's fuel gas sector: history, current status, and future prospects

Authors: Yang C-J, Y Zhou, RB Jackson


China has a unique urban pipeline network of three types of fuel gases: manufactured gas (coal gas), Liquefied Petroleum Gas (LPG), and natural gas. Manufactured gas, which is often seen as an outdated technology in the western world, is still widely used in Chinese cities. LPG is distributed through community-based pipelines in many Chinese cities, in addition to its distribution in cylinders and canisters in rural areas. Natural gas consumption is increasing throughout China, particularly as a cooking fuel. Expanding the production and supply of natural gas in China faces many challenges. In particular, China’s controls on natural gas prices have deterred investment in exploration and natural gas imports. However, recent price decontrols of unconventional natural gas (defined in Chinas as shale gas, coal-bed methane, and coal-to-natural-gas), and pilot pricing reform in Guangdong and Guangxi provinces, appear likely to increase natural gas use. Elsewhere in China, the prospect for increased exploration remains uncertain and will depend greatly on the future of price reforms. In the near term, regulatory reforms toward a more market-driven system will be the most critical issue in the development of China’s fuel gas sector.



up2014.pdf
Journal Name
Utilities Policy
Publication Date
2014