CNPC Bets Big on Natural Gas

State owned energy behemoth China National Petroleum Corp (CNPC) expects to boost it natural gas suppies and transportation capacity in the next five years.

The company is looking to sell in excess of 750 billion cubic meters (bcm) of gas between now and 2020, a 40 percent jump compared with the previous five years, China Daily quoted Zhao Zhongxun, deputy-director of CNPC's planning department as saying. CNPC supplies more than two-thirds of the country's natural gas.

"Our top priority is to boost domestic supplies of natural gas, then adjust imports based on demand, and at the same time expand our pipeline network and capacity of LNG terminals," he said while addressing a conference held in Beijing.

The company sees its pipeline network exceeding 60,000 kilometers by 2020 with an annual transport capacity of 180 bcm. Also planned are 12 more gas-storage sites, with the receiving capacity of its three liquefied natural gas terminals expanding from 13 million tons to 19 million tonne, China Daily added.

With environmental pollution a major issue in China, the government is promoting usage of green fuels like natural gas. Proportion of natural gas in country’s energy mix still remains low at close to 6 percent compared with global average of about 25 percent. China's natural gas consumption growth has slowed in recent past, the government believes expanding its use is needed to promote energy upgrades and energy revolution.