Following the National Development and Reform Commission, the Ministry of Environmental Protection and the Ministry of Commerce have also successively expressed their views on addressing the natural gas supply gap from their respective perspectives. On December 7, Beijing Business Journal reporters learned from the industry that the Ministry of Environmental Protection has issued an urgent document to the "2+26" cities in the Beijing-Tianjin-Hebei region and surrounding areas, titled "Letter on Requesting Comprehensive Management of Coal Combustion to Ensure the Warm Winter for the Public." It clearly states that for projects and local areas where coal-to-gas (electricity) conversion is not yet completed, the past coal-burning heating methods or other alternative methods should continue to be used. Meanwhile, at the Ministry of Commerce's regular press conference on the same day, spokesperson Feng Gang also made it clear that China actively supports enterprises in diversifying their imports of overseas natural gas resources. However, in the industry's view, the relatively slow progress in the construction of gas storage facilities and the entire oil and gas system reform process are the core issues that China needs to face in the natural gas supply process.
Jointly ensure supply
As China continues to advance its energy structure adjustment, natural gas is increasingly solidifying its position in energy consumption, with its role in heating and power supply continually growing.
However, the document issued by the Ministry of Environmental Protection also points out that recently, during the verification process, the Ministry has found that some areas are facing issues such as tight natural gas supply during the heating season. Therefore, the document states that in the promotion of coal combustion control, completed projects and localities must ensure a stable supply of gas and electricity as well as price stability.
On the same day, Fenggang also clarified the stance on ensuring natural gas supply from the import perspective, stating, "Our country attaches great importance to the guarantee of natural gas supply and actively supports enterprises in increasing domestic natural gas production while diversifying imports of overseas natural gas resources." Fenggang indicated that with the completion and operation of new cross-border natural gas pipelines and coastal liquefied natural gas receiving stations, China's import capacity and level of natural gas is expected to be further enhanced.
On the other hand, the National Development and Reform Commission (NDRC), the authority in charge of pricing, has also begun to strictly regulate the prices of natural gas supply. Data shows that the price of liquefied natural gas at the factory has surged sharply in the short term, reaching a historical peak of 9,400 yuan/ton on December 1st. According to the National Bureau of Statistics, the market price of this product was only 4,337 yuan/ton at the end of October. Beijing Business Journal reporters learned from the industry that the NDRC has issued a "Notice on Deploying a Reminder and Caution Meeting on the Price Law and Policy of Liquefied Natural Gas" to local NDRCs (Price Bureaus) across the country, clearly reminding and cautioning liquefied natural gas enterprises and relevant social organizations to:自觉 comply with price laws and regulations, maintain the price order of the industry, not to fabricate and disseminate price increase information, not to maliciously hoard and drive up prices, not to abuse market dominance, and not to reach monopolistic agreements, etc.
Key Player in Energy Structure Adjustment
The relatively clean nature of natural gas has indeed accelerated its penetration into various fields such as daily life and corporate operations, with continuous increases in market demand across different regions. The National Energy Administration has published articles stating that in the face of tightening resource and environmental constraints, the green transformation of energy is increasingly urgent, necessitating a significant increase in the proportion of natural gas. In June of this year, the National Development and Reform Commission and the National Energy Administration, among 13 other ministries, jointly issued "Opinions on Accelerating the Utilization of Natural Gas," which clearly outlines the gradual development of natural gas as one of the main energy sources in China's modern clean consumption energy system. According to the National Development and Reform Commission's statistics, from January to October this year, China's natural gas production reached 121.2 billion cubic meters, up 11.2% year-on-year; the import volume was 72.2 billion cubic meters, increasing by 27.5%; and the consumption volume was 186.5 billion cubic meters, up 18.7%.
High Peak introduces that with the continuous increase in China's natural gas consumption level, imported natural gas has become one of the important sources of China's natural gas supply. According to customs statistics, from January to October this year, China's natural gas imports reached 54.165 million tons, a year-on-year increase of 24.9%. Among them, gaseous natural gas was 25.073 million tons, up 5.9% year-on-year; liquefied natural gas was 29.092 million tons, setting a new historical high, with a year-on-year increase of 47.7%.
The increase in natural gas consumption has also witnessed the adjustment of energy structures in various regions. Taking Beijing as an example, data from the Beijing Statistical Yearbook shows that between 2010 and 2016, Beijing's total energy consumption rose from 63.59 million tons of standard coal to 69.61 million tons of standard coal. The proportion of coal consumption dropped from 29.6% to 9.8%, a decrease of over 60%. Meanwhile, the share of natural gas consumption soared from 14.6% to 31.7%, an increase of about 50%.
