Tuesday, January 5, 2010

China hopes to store natural gas

Article in Reuters from Dec. 28.

China to build natural gas storage facility in 2010
* Aims to avoid repeat go gas shortages
* Aims to curb excessive industrial usage of natural gas

China will start building storage facilities across the country for natural gas to avoid a reoccurrence of this winter's supply shortages at Chinese cities.

A cold spell across northern and central China since the beginning of this month has reduced supplies of natural gas to cities including Hangzhou, Wuhan and Xi'an, affecting transportation, industrial production and residential consumers.

"Natural gas consumption keeps expanding very fast while our reserves and peak-managing ability lag far behind," Zhang Guobao, head of the National Administration of Energy.... Zhang did not give the storage capacity but said that his office would work to curb excessive growth in industrial usage of natural gas while safeguarding residential consumption.

China's natural gas production grew by 8 percent in the first eleven months compared with a year earlier, while consumption expanded by 11 percent in the same period.

A natural gas pipeline linking Turkmenistan and China's Xinjiang was opened on December 14 to carry gas to six Chinese provinces including Beijing, Hebei and Shanxi, benefiting more than 50 million people, Xinhua quoted Zhang as saying.

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