Gas pipeline system hits 110,000 km

China's efforts to step up natural gas pipeline network construction in recent years are essential to ensure that China's gas supply system can continue to meet the country's growing gas needs, experts said.

China's natural gas pipeline network now totals 110,000 kilometers, of which 46,000 km were been built during the 13th Five-Year Plan (2016-20) period, said the China Natural Gas Development Report 2021 issued by the National Energy Administration in August.

China's diversified natural gas supply system has continued to improve, and a "national network "has basically taken shape, according to the report, which reviews recent developments in the country's gas sector and sets out plans for the years ahead.

The government should further lift domestic gas production and diversify its gas import channels, while ensuring domestic gas consumption via various measures, it said.

Analysts said the additional natural gas pipeline capacity, more storage and increased connectivity across the natural gas network during the past few years have helped ensure domestic gas consumption in the country as it shifts toward a greener energy mix.

The high-quality development of the natural gas sector in the country has become one of the important engines driving investment growth in China, said Luo Zuoxian, head of intelligence and research at the Sinopec Economics and Development Research Institute.

Investment related to natural gas-related industries, including exploitation and development, infrastructure facility construction and equipment manufacturing, has reached 3 trillion yuan ($460 billion) during the 13th Five-Year Plan period, according to the administration.

However, as the world's third-largest natural gas user, the country's 110,000-km gas pipeline network still has room for development compared with developed countries.

Li Ziyue, an analyst with BloombergNEF, said even though China has accelerated natural gas grid construction during the 13th Five-Year Plan period, more pipelines need to be built to satisfy an ever-growing appetite for gas across the country.

By comparison, the United States, the country with the longest gas pipeline network in the world, has around 486,000 km of gas transmission pipelines, she said.

According to the administration, China has achieved tremendous results in boosting natural gas production during the past few years. Total investment of oil and gas exploitation during the 13th Five-Year Plan period reached 1.36 trillion yuan. The country's natural gas production last year reached 192.5 billion cubic meters, up 9.8 percent year-on-year, it said.

Gas consumption also witnessed steady growth in recent years. Last year saw natural gas consumption reach 328 billion cubic meters, 70 percent more than that of 2015. The newly added gas consumption during the 13th Five-Year Plan period is equivalent to carbon dioxide reductions of 570 million tons and sulfur dioxide reductions of 6.3 million tons, it said.