China Daily: Underground Gas Storage Capacity 'Key to Energy Security'

Underground natural gas storage capacity should be expanded to increase the nation's strategic energy reserves and ensure supply, said a senior official from China Petrochemical Corp (Sinopec), the country's biggest refiner.

Sun Jian, general manager of the Jianghan Oilfield Branch of Sinopec, who is also a deputy of the National People's Congress, said during the two sessions that China should build more underground storage facilities along with increased exploration and an expansion of the pipeline network.

China, as the third-biggest natural gas user in the world, consumed 176.1 billion cubic metersof natural gas last year, five times the level of a decade earlier.

However, Sun said the country does not have enough storage facilities for the fuel, and theones that exist are poorly located.

As of Dec 31, there were 20 underground storage facilities with total capacity of 4.2 bcm,accounting for only 2.4 percent of annual consumption, which is far below the international standard of 10 to 15 percent. MORE