Publications

Survey of Energy Resources 2007

Natural Gas Country Notes

Past gas discoveries have been fewer than those of crude oil, which is reflected in the fairly moderate level of proved reserves. Gas reservoirs have been identified in many parts of China, including in particular the Sichuan Basin in the central region, the Tarim Basin in the north-west and the Yinggehai (South China Sea). China's gas resource base is thought to be enormous: estimates by the Research Institute of Petroleum Exploration and Development, quoted by Cedigaz, put total resources at some 38 000 bcm, of which 21% is located offshore. Most of the onshore gas-bearing basins are in the central and western parts of China.

The level of proved reserves adopted for the present Survey has been derived from published sources. Compared with the situation obtaining when the 2004 SER was being compiled, a growing consensus is evident in respect of China's gas reserves. OPEC and BP quote 2 350 bcm, which is also the level given by Cedigaz for 1 January 2005 - its 1 January 2006 level is presently under review; OAPEC has 2 229, while although Oil & Gas Journal gave 1 510 for reserves at 31 December 2005, it raised its estimate to 2 265 for end-2006. The only remaining outlier is World Oil's figure of 1 575 bcm. For present purposes, a level of 2 350 bcm has been adopted.

The major outlets for natural gas within China are as industrial fuel/feedstock (46%), oil/gas industry own use/loss (21%) and the residential/commercial sector (24%). Natural gas has relatively small shares in the generation of electricity and bulk heat. In January 1996, China began delivering natural gas to the Castle Peak power station in Hong Kong via a pipeline from the offshore Yacheng field; deliveries in 2005 were about 2.2 bcm.