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Is Coal-to-gas the Solution to China's Rising Gas Demand?

Pubdate:2012-07-18 10:28 Source:lijing Click:

China's domestic coal gasification sector is developing rapidly yet there remains a limited understanding of the potential for the sector within the global gas industry.

As the world's largest coal producer, China has access to abundant, low cost coal supply and domestic gasification technology costs appear competitive against established CTG costs outside of China. Given the overall pace of gas demand in China, the government has supported coal-to-gas (CTG) investment partly due to the slow pace of CBM and shale gas development and partly as an alternative to higher cost imports.

In response, a broad range of Chinese companies are proposing an unprecedented level of CTG investment which, if realised, would significantly alter both the gas supply outlook and China's import needs.

Will the government continue to support CTG going forward? And how will rising shale gas output beyond 2020 impact CTG developments?

Extracted from the Wood Mackenzie China Gas and Power Service Insight Report: Is Coal-to-Gas the solution to China's rising gas demand?, published to clients in July 2012.

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The China Gas and Power Service provides a macro-level view of China's gas and power supply, demand and price outlook to 2030. As well as detailed regional and provincial-level analysis covering north, east, south, central and south west China.