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China's fuel gas sector: History, current status, and future prospects

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  • Yang, Chi-Jen
  • Zhou, Yipei
  • Jackson, Robert B.

Abstract

China has a unique urban pipeline network of three types of fuel gases: manufactured gas (coal gas), Liquefied Petroleum Gas (LPG), and natural gas. Manufactured gas, which is often seen as an outdated technology in the western world, is still widely used in Chinese cities. LPG is distributed through community-based pipelines in many Chinese cities, in addition to its distribution in cylinders and canisters in rural areas. Natural gas consumption is increasing throughout China, particularly as a cooking fuel. Expanding the production and supply of natural gas in China faces many challenges. In particular, China's controls on natural gas prices have deterred investment in exploration and natural gas imports. However, recent price decontrols of unconventional natural gas (defined in Chinas as shale gas, coal-bed methane, and coal-to-natural-gas), and recent pricing reforms, appear likely to increase natural gas use. The prospect for increased exploration is promising but will still depend greatly on the future of institutional reforms. In the near term, regulatory reforms toward a more market-driven system will be the most critical issue in the development of China's fuel gas sector.

Suggested Citation

  • Yang, Chi-Jen & Zhou, Yipei & Jackson, Robert B., 2014. "China's fuel gas sector: History, current status, and future prospects," Utilities Policy, Elsevier, vol. 28(C), pages 12-21.
    • Handle: RePEc:eee:juipol:v:28:y:2014:i:c:p:12-21
    DOI: 10.1016/j.jup.2013.11.002
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    References listed on IDEAS

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    6. Sutar, Kailasnath B. & Kohli, Sangeeta & Ravi, M.R. & Ray, Anjan, 2015. "Biomass cookstoves: A review of technical aspects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1128-1166.
    7. Zhang, Xiao-Bing & Hassen, Sied, 2017. "Household fuel choice in urban China: evidence from panel data," Environment and Development Economics, Cambridge University Press, vol. 22(4), pages 392-413, August.
    8. Chen, Yilin & Shen, Huizhong & Zhong, Qirui & Chen, Han & Huang, Tianbo & Liu, Junfeng & Cheng, Hefa & Zeng, Eddy Y. & Smith, Kirk R. & Tao, Shu, 2016. "Transition of household cookfuels in China from 2010 to 2012," Applied Energy, Elsevier, vol. 184(C), pages 800-809.
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