Economy

Markets

Industries

Insights

Reports

Events

Nation to boost gas production

By Wan Zhihong (China Daily)
Updated: 2009-02-18 08:09

In a move aimed at meeting rising domestic demand for oil and natural gas, China plans to boost production of these essential fuels by 4 percent and 58 percent, respectively, by 2011.

Related readings:  Russia, China sign $25 billion energy deal  Survey: Chinese willing to stump up for clean energy  Export of high energy-consuming products down 16.2% in 2008  Energy: Power output falls 13% in Jan on weak demand

Crude oil output is expected to touch 198 million tons, while natural gas production will be 120 billion cu m in 2011, a three-year plan chalked out by the National Energy Administration has outlined.

Under the blueprint, China will build some large oil and gas production bases over the next three years. The country will stabilize the output from oil fields in northeast China and the Bohai Sea Bay area, while speeding development of fields in the Tarim, Junggar, Erdos and Sichuan basins.

As the world's second biggest oil consumer, China will work to increase its offshore oil and gas production.

By 2011, China will increase its total oil refining capacity to 440 million tons. Besides the construction of large refineries in Sichuan, Quanzhou, Guangzhou and Shanghai, China will push for joint-venture refinery projects with companies from Venezuela, Qatar and Russia.

The three-year plan has also covered many other areas, including the construction of oil and gas pipelines, development of clean fuel and financial support for the energy sector.

Energy industry needs more reform to pull through the difficulties of the economic chill worldwide, said Zhang Guobao, head of the NEA.

The global financial crisis has had a negative impact on China's economy and the country's energy sector is no exception, he said. "However, China's energy industry still has vast development potential as the huge population dictates demand."