China’s natural gas output fall short of meeting the government’s ambitious aim to gradually replace coal with natural gas and reduce air pollution. The country’s heavy reliance on gas imports exposes its supply–demand balance to risks, which can lead to volatile gas prices. For example, when the demand for gas peaked in November 2017, the LNG price rocketed to a record high of RMB 7,000 per tonne. Therefore, China needs to urgently develop gas storage facilities to buffer the impact of demand peak. Despite holding vast reserves of unconventional gas with up to 124.67 bcm of newly discovered shale gas in 2018, producers must contend with China’s complex topography and the remote locations of its resources, which results in higher prices and longer time required for drilling.

01 EXECUTIVE SUMMARY 

02 SECTOR OUTLOOK 

03 SECTOR IN FOCUS 

04 COMPETITIVE LANDSCAPE 

05 COMPANIES IN FOCUS 

06 REGULATORY ENVIRONMENT