Natural Gas Industry In China Research Articles

Gas Composition Tracking in a Transient Pipeline Using the Method of Characteristics

For a gas pipeline with multiple gas sources, the significance of tracking the composition of natural gas is increasing with the implementation of X+1+X system for the natural gas industry in China. Mathematically, the tracking problem is usually described by a system of partial differential equations (PDEs). The continuity equation on gas composition has been developed to track natural gas composition according to the law of mass conservation. The algorithm resulting from the method of characteristics (MOC) is proposed to solve the system of PDEs. Compared to the original MOC, numerical solutions of the continuity equation on gas composition are obtained after the hydraulic calculation and thermal calculation. Moreover, different combinations of boundary conditions for the MOC are derived, which could expand the range of application of the MOC and be applicable to various operating conditions. The heating values of diverse gas sources have been determined following the methods documented in ISO 6976:2016. The case study of a gas pipeline in China verified the validity of the algorithm via the commercial simulation software Pipeline Studio for Gas (TGNET). The heating value and gas composition obtained by the algorithm can be used in the custody transfer metering of natural gas pipelines for Class B and C metering stations described in GB/T 18603−2014.

Methane emissions from the natural gas industry in China – A systematically accounting based on the bottom-up approach

The comprehensive and meticulous assessment of methane (CH4) emissions stemming from the natural gas industry stands as an imperative endeavor in steering the natural gas industry toward a trajectory of low-carbon sustainability. This study has meticulously constructed detailed facility-level inventories for CH4 emissions within China's natural gas industry and used a bottom-up approach to fully account for both direct and indirect CH4 emissions. The findings reveal a notable increase in CH4 emissions within the natural gas industry in China, rising from 2.04 Mt in 2012 to 3.94 Mt in 2021. Regionally, Shaanxi, Sichuan, and Xinjiang emerged as the primary emission contributors in 2020, signifying a shift from northeastern and northern China to northwestern and southwestern regions during the 2012–2020 period. The fluctuations in emissions, both overall and regionally, closely align with the evolving landscape of China's natural gas sector. Projections for future CH4 emissions indicate a continued upward trajectory in tandem with industry growth. Consequently, the study emphasizes the urgency of implementing emission reduction measures in China's natural gas industry. Timely intervention is crucial to ensuring the orderly progression of the industry while effectively curbing the associated CH4 emissions.

Development, challenges and strategies of natural gas industry under carbon neutral target in China

In the mid-21st century, natural gas will enter its golden age, and the era of natural gas is arriving. This paper reviews the development stages of global natural gas industry and the enlightenment of American shale gas revolution, summarizes the development history and achievements of the natural gas industry in China, analyzes the status and challenges of natural gas in the green and low-carbon energy transition, and puts forward the natural gas industry development strategies under carbon neutral target in China. The natural gas industry in China has experienced three periods: start, growth, and leap forward. At present, China has become the fourth largest natural gas producer and third largest natural gas consumer in the world, and has made great achievements in natural gas exploration and development theory and technology, providing important support for the growth of production and reserves. China has set its goal of carbon neutrality to promote green and sustainable development, which brings opportunities and challenges for natural gas industry. Natural gas has significant low-carbon advantages, and gas-electric peak shaving boosts new energy development; the difficulty and cost of development are more prominent. For the national energy security and harmonious development between economy and ecology under the carbon neutral goal, based on the principle of “comprehensive planning, technological innovation, multi-energy complementarity, diversified integration, flexibility and efficiency, optimization and upgrading”, the construction of the production-supply- storage-marketing system has to be improved so as to boost the development of the natural gas industry. First, it is necessary to strengthen efforts in the exploration and development of natural gas, making projects and arrangement in key exploration and development areas, meanwhile, it is urgent to make breakthroughs in key science theories and technologies, so as to increase reserve and production. Second, it should promote green and innovative development of the natural gas by developing new techniques, expanding new fields and integrating with new energy. Third, there is a demand to realize transformation and upgrading of the supply and demand structure of natural gas by strengthening the layout of pipeline gas, liquefied natural gas and the construction of underground gas storage, establishing reserve system for improving abilities of emergency response and adjustment, raising the proportion of natural gas in the primary energy consumption and contributing to the transformation of energy consumption structure, realizing low-carbon resources utilization and clean energy consumption.

Carbon emissions from various natural gas end-use sectors for 31 Chinese provinces between 2017 and 2021

Natural gas (NG) is a low-carbon fuel that is becoming a crucial transitional energy in China for reducing carbon emissions. In this study, a life-cycle assessment was performed to correlate carbon emissions and NG consumption for different end uses in China. A bottom-up life-cycle assessment framework was combined with carbon emission coefficients to quantify NG consumption in 31 Chinese provinces between 2017 and 2021, as well as the carbon emissions (in carbon dioxide (CO2) equivalents, including CO2 and methane) released during NG production, transportation, and consumption. The carbon emission factors for different types of end-use consumption were considered. The assessment results indicate that both NG consumption and life-cycle carbon emissions from NG use have increased since 2017. Between 2017 and 2021, NG consumption in China increased from 260 to 370 billion cubic meters and life-cycle carbon emissions from NG increased by 39% (from 930 to 1292 Mt CO2). The carbon emissions released during NG production and transportation accounted for approximately 31% of NG life-cycle emissions. Considerable variations in NG life-cycle carbon emissions were identified across different provinces and sectors, highlighting the need for targeted efforts to reduce carbon emissions. The objective of this study was to provide useful insights into sustainability development of the NG industry in China for optimizing NG allocations to different end uses and maximizing the environmental and economic benefits of NG.

Enhanced gas recovery: Theory, technology, and prospects

Research on the enhanced gas recovery (EGR) technology is urgently needed in most of China's major gas fields due to low recovery in their late development stages. To promote progress in ERG theory and technology, this paper establishes a unified and universal model for gas recovery evaluation, analyzes the key factors affecting the gas recovery, and expects the prospect of EGR. The results are obtained as follows. First, the production degree of reserves, pressure drawdown sweep efficiency and pressure depletion efficiency are key factors affecting the gas recovery, which is the product of the coefficients corresponding to these factors. Second, according to the development practice of Anyue Longwangmiao gas reservoir, Kela 2 gas field, Sulige gas field and Southern Sichuan shale gas, it is estimated that the recovery of conventional water-driven gas reservoirs and unconventional gas reservoirs (incl. tight gas and shale gas) can be improved by 6–15 percentage points by increasing the production degree of reserves, the pressure drawdown sweep efficiency and pressure depletion efficiency. Third, it is proposed that clarifying the EGR mechanism, developing new EGR methods, and promoting the field test of EGR technologies are directions for theoretical and technical researches. The study results provide a theoretical foundation for EGR. The EGR methodologies for different types of gas reservoirs provide technical support for improving gas recovery and stable production of existing gas fields, promote healthy and rapid development of natural gas industry in China and provide guidance for guaranteeing national energy security.

Impact of Digital Industrialization on the Energy Industry Supply Chain: Evidence from the Natural Gas Industry in China

The global economy is moving into a new era characterized by digital and green development. To examine the impact of digital industrialization development on the energy supply chain, in relation to the sustainable development of China’s energy security, we discuss the nonlinear impact and transmission mechanism of digital industrialization on the supply chain of the energy industry using a panel threshold regression model based on sample data on the development of the provincial natural gas industry in China from 2006 to 2020. We found that there are multiple threshold effects of digital industrialization level development on energy supply chain length, and the results are statistically significant, i.e., digital industrialization development positively contributes to natural gas supply chain length after digital industrialization is raised to or crosses the critical threshold. Meanwhile, the heterogeneity analysis results show that there are differences in the impact of digital industrialization on the energy supply chain from sub-sectors, regional development differences, and different development periods. Therefore, we provide some factual support and experience for achieving the construction goal of “Digital China” and accelerating the digital reform of the energy supply chain as well as transforming and upgrading the economic structure.

Development of natural gas industry in China: Review and prospect

In order to better promote the sustainable, effective and rapid development of natural gas business and the on-schedule realization of “carbon peak and carbon neutrality” goal, this paper summarizes and reviews the achievements and experience in the development of natural gas industry in China. Then, the influence of energy environmental policies on the development of natural gas industry is analyzed, and domestic natural gas exploration and development situations are dissected. Finally, domestic natural gas exploration and development prospect is forecasted, and the corresponding development suggestions are proposed. And the following research results are obtained. First, under the commitment of the Paris Agreement and the strategy of carbon peak and carbon neutrality, China's natural gas industry faces unprecedented development opportunities. Second, domestic natural gas is characterized by abundant resource bases, low proven rate of resource and clear target and field of reserve and production increase, but the complexity of the resources and the rise of exploration and development cost make it more difficult to realize the large-scale efficient increase of natural gas production. Third, nevertheless, in order to ensure national energy security and reach the dual goals of economic development and environmental protection, China continues to powerfully enhance domestic oil and gas exploration and development. According to the growth trend of new proved gas reserves, it is predicted that the domestic new proved gas reserves by 2040 will be 16 × 1012–20 × 1012 m3, the peak natural gas production of 2900 × 108–3300 × 108 m3 will be reached in 2030, and the proven rate of recoverable gas resources will be around 14%, which indicates the sustainability of the development goal. In order to realize these development goals, five suggestions are put forward: (1) Maintain continuous and stable investment in exploration and development, so that new breakthroughs and discoveries can be achieved continuously in natural gas exploration and natural gas development can keep the production arrow upward while compensating the production decline; (2) Strengthen technological researches and make use of technological and managerial innovation to break through forbidden exploration areas and improve the development benefits of gas fields; (3) Enhance the comprehensive management of developed gas fields to increase their ultimate recovery factor; (4) Optimize domestic and foreign gas sources, conventional and unconventional gas compositions as a whole to improve the ability to deal with gas supply risks; (5) Provide taxation preferences and subsidy policies continuously for unconventional natural gas to speed up the large-scale benefit production increase of unconventional natural gas.

Urban natural gas demand and factors analysis in China: Perspectives of price and income elasticities

Urban natural gas is becoming the main sector driving China's natural gas consumption growth in recent years. This study explores the impacts of urban natural gas price, wage, socioeconomic determinants, and meteorological conditions on urban natural gas demand in China over 2006–2017. Furthermore, this study also analyzes the potential regional heterogeneity and asymmetry in the impacts of gas price and income on China's urban gas demand. Empirical results reveal that: (1) The increased gas price can significantly reduce the urban gas demand, and the average income level may effectively promote the gas demand, also, a strong switching effect exists between electricity and natural gas in urban China; (2) these impacts are heterogeneous in regions among China, urban natural gas demand is largely affected by the gas price in regions with high-gas-price and by income in regions with low-gas-price; and (3) the impact of gas price on urban gas consumption is consistent in regions with different urban natural gas consumption, while the impact of income is asymmetric. This study further provides several policy implications for improving the urban natural gas industry in China.

2021–2025 is a period of great development of China's natural gas industry: Suggestions on the exploration and development of natural gas during the 14th five-year plan in China

Among the world's 10 major gas producing countries, only the United States (USA), Russia and Iran have annual gas production of 250 × 109 m3 or more. China is expected to have gas output of 250 × 109 m3 in 2025. There are three advantages for the great development of natural gas industry in China. Firstly, the natural gas resources are rich and the proved rate is low and only 8.6%, so it has the resource advantage for faster development; Secondly, over the past 35 years, natural gas production continues to grow, with the growth advantage for faster development; Finally, since 2006, the remaining recoverable reserves of natural gas have been increasing year by year, showing the reserve advantage for faster development. In recent 10 years, China's annual natural gas production growth rate, remaining recoverable reserves and reserve-production ratio of natural gas support that China's annual gas production in 2025 will reach 250 × 109 m3. Suggestions for accelerating natural gas exploration and development during the 14th Five-Year Plan Period: (1) Opening new exploration and development fields of Carboniferous-Permian shale gas in the Ordos Basin; (2) Exploring three potential large gas districts with hidden coal measures in the northern Tianshan Piedown Depression, Qaidam Depression, and Xihu Sag; (3) Accelerating the development of seven large gas fields with proved reserves over 100 × 109 m3, such as Lingshui 17–2 Gas Field; (4) Increasing the drilling of gas wells and ultra-deep exploration wells.

Daily natural gas load forecasting based on the combination of long short term memory, local mean decomposition, and wavelet threshold denoising algorithm

With the opening of the third energy revolution, the booming development of the natural gas industry in China has led to the existing pipeline network facilities no longer meeting the gas demand of its residents. How to adjust pipeline network layout and design peak-regulating gas storage facilities to meet the gas demand of residents has become a challenge. However, accurate load forecasting can help solve this problem. To that end, this paper proposes a novel combined model that integrates local mean decomposition (LMD), wavelet threshold denoising (WTD), and long short term memory (LSTM) methods to predict short-term gas consumption, or “LMD-WTD-LSTM”. To begin with, based on the above three basic methods, this paper adopts two different combination schemes, schemeⅠand schemeⅡ, to predict the gas consumption of London city. The results show that schemeⅡ is better than schemeⅠ. Further, this paper compares the predicted results with four other forecasting methods: such as back propagation neural network (BPNN) model, the gated recurrent unit (GRU) model, the multiple linear regression (MLR) model, and the LSTM model. Finally, this paper discusses the influence of different temperatures and different forecasting time lengths (FTL) on the prediction accuracy of the LMD-WTD-LSTM model. The results show that when the forecasting time length is 20 days, the mean absolute percentage error (MAPE) of schemeⅡ is 11.63 %, which is the lowest in comparison to the other four methods. According to this study, the LMD-WTD-LSTM method has an excellent performance in daily natural gas prediction.

Natural gas industry in China: Development situation and prospect

China's natural gas industry has entered a rapid development stage, and its supply, sales, storage and transport systems are continuously undergoing profound structural change. It is a major issue concerning national energy security to objectively grasp the current development situation and trend of natural gas industry and make scientific predictions. In this regard, through the analysis of global natural gas resources status, trade pattern and development trend, we reviewed the development process, current situation, trend and problems in natural gas industry in China, then made prospect analysis and judgment in terms of demand and supply, etc., and finally put forward some reasonable and sustainable strategic countermeasures and proposals. The following results were obtained. (1) The comprehensive energy elasticity coefficient method was adopted to predict that the natural gas consumption volume in 2030 will be about 650 billion cubic meters. (2) Affected by many factors such as energy supply side reform, industrialization and urbanization, the growth rate of domestic natural gas consumption is much higher than that of production and the development of natural gas industry still faces a series of problems. (3) It is necessary to strengthen the exploration and development of natural gas to ensure the increase of domestic natural gas storage and production. (4) Diversified import channels should be continuously expanded to disperse the risk of excessive growth of natural gas dependence on foreign countries. (5) The construction of national and dynamic interconnection system and hub should be accelerated. (6) China should rationalize the price mechanism of natural gas, gradually open the control on industrial and seasonal consumption, and strengthen the overall sales guidance in the national market.

Is Natural Gas Consumption Mitigating Air Pollution? Fresh Evidence from National and Regional Analysis in China

As China has called for the mitigation of fine particulate matter such as PM 2.5 emissions, developing the natural gas industry is considered as an effective way to reach this mitigation goal. The positive impact of natural gas on inhibiting PM 2.5 emissions is well documented, but the regional difference in this field is scant. Therefore, this study assesses the impact of natural gas consumption on PM 2.5 emissions and examines the environmental Kuznets curve (EKC) relationship between economic growth and PM 2.5 emissions, based on the panel data of 30 provinces in China from 1998 to 2016. Furthermore, the regional difference is analyzed from the perspective of economic development and natural gas development. The estimation results report two inverse relationships between PM 2.5 emissions and natural gas consumption in the case of China. Specifically, at the national level, PM 2.5 emissions has risen by 0.023% with natural gas consumption demonstrating 1% growth, which indicates that natural gas consumption in China will exacerbate PM 2.5 emissions. However, the use of natural gas has an additional effect on PM 2.5 emissions in the regions with high levels of natural gas consumption. For the high consumption region of natural gas, a 1% increment of natural gas usage inhibits the release of PM 2.5 by 0.017%. The result implies that the mitigation effects on PM 2.5 emissions only arise in the areas where natural gas is largely used. Furthermore, the validity of EKC pattens between economic growth and PM 2.5 emissions is confirmed across China, and the EKC has reached its peak. Varied causality links among PM 2.5 emissions, economic development, and natural gas consumption have been distinguished according to the causality flow. Finally, two efficient policy implications are proposed to address PM 2.5 emissions and accelerate the growth of the natural gas industry in China.

Connotations of scientific development of giant gas fields in China

A giant gas field refers to a gas field with proved geological reserves of natural gas more than 30 billion cubic meters, peak annual output of natural gas more than 1 billion cubic meters, and a certain plateau period. It is an important foundation for the rapid growth of China's natural gas reserves and production and its long-term stable development in the future. And it is also the key to ensure the security of gas supply. By systematically analyzing the development practice of more than 260 gas fields at home and abroad and dissecting and simulating typical gas fields, this paper comprehensively studied the connotation, core technology and whole life cycle index system on the scientific development of giant gas fields. It is indicated that the scientific development connotation of giant gas fields consists of the following parts. First, the natural gas development concept with “water identification, control and treatment” as the technical system is put forward. That is to carry out “water-control development” in conventional gas fields and hydraulic fracturing development in unconventional gas fields. A reasonable gas production rate should be set according to the types and characteristics of gas reservoirs. Second, economic and social benefits of gas field development should be evaluated comprehensively to ensure its long-term stable production. Third, the suitable production stabilization mode shall be adopted according to the production characteristics of gas wells and the development characteristics of reservoirs. Fourth, the recoverable reserves of a gas field, the development laws of formation water and artificial water flooding, the ultimate recovery technological countermeasures of the gas field, the cost-effective stable period of the gas field should be determined based on the fine description of conventional and unconventional gas reservoirs in different stages, the development characteristics of gas reservoirs and the monitoring results of production performance. The core technologies in the scientific development of giant gas fields include large-scale optimization technology, scientific well arrangement technology, balanced production technology and deep potential tapping technology. Based on this, several parameters are selected comprehensively as the key indexes for the scientific development of giant gas fields, such as production rate, pressure drop, degree of reserves recovery and output per unit pressure drop, and the whole life cycle index systems for four types of gas reservoirs are established, i.e., high-pressure gas reservoirs, low-permeability and tight gas reservoirs, fractured–porous reservoirs, and shale gas reservoirs. In conclusion, the research results enrich and improve the theories of natural gas development geology and are conducive to guiding the scientific development of different-type giant gas fields, thus further promoting the rapid development of natural gas industry in China.

High-quality development of ultra-deep large gas fields in China: Challenges, strategies and proposals

Natural gas from ultra-deep reservoirs has been a major contributor for reserves boost, deliverability construction, and profits growth in natural gas industry in China. As a significant strategic domain in the future development of upstream business, the high-quality development of ultra-deep gas resources has great significance for economic benefits enhancement and sustained regional supply assurance. In this paper, based on the appraisal of development characteristics and effectiveness in the developed large ultra-deep gas fields, challenges for high quality development were indicated, which include the difficulties in structure confirm, uncertainties in reserves define and production optimization, risks of aquifer water early breakthrough and high investment of deep wells. Through indoor physical simulation experiments, reservoir characterization, performance evaluation, reservoir simulation and knowledge acquisition from analogous fields at home and abroad, the connotation and requirements for high quality development were discussed, and furthermore, strategies and proposals were thus proposed as follows: to strengthen the pre-development reservoir evaluation to define movable gas reserves and quantify rational production rate so as to avoid facility waste; to optimize both well pattern and well flow rate to achieve uniform depletion and high EUR; to continuously enhance drilling & completion technologies to further reduce drilling and completion circle and cost and targeted reservoir stimulation technologies to enhance movable reserves and single-well productivity and increase the depletion of inferior reserves; and to innovate management modes to establish scientific programs and procedures for the construction, production and operation of ultra-deep gas fields and strictly control the upper limit index of production rate so as to emphasize quality benefits. In conclusion, high-quality development of ultra-deep gas fields, a hard and complex system though, will be possibly achieved only by continuous innovation of exploration and development technologies and management modes.

Several essential geological and geochemical issues regarding shale gas research in China

Recently, shale gas research and industrial production in China have been significantly developed, which has enriched the theory of natural gas geology in China and increased the supply of domestic natural gas production. In the future, shale gas will obtain great achievements among the developments of the natural gas industry in China. The following four geological and geochemical issues about the exploration and research of shale gas have great significance: (1) China has to break through the single economic shale gas formation. The United States found at least thirty sets of economic shale gas formations in 29 basins. To date, only one basin in China (Sichuan Basin) has found one set of economic shale gas formation (Wufeng-Longmaxi formations). (2) In regards to the interval RO value of the economic shale gas formations and segment RO value of the gas fields, the interval RO values are 3.31% for the economic shale gas formation in China. However, it is 4.1% for that in the USA. The segment RO values are 2.34% for the gas fields in China and 3.5% for that in the USA. So the values are small in China, but big in the USA. Several shale gas fields derived from sapropelic sources in the United States were found in the oil generation window with RO = 1.0%–1.3%. Therefore, shale gas exploration in China also needs to pay attention to this stage. At the same time, attention should be paid to the exploration of shale gas derived from humic sources. (3) When it comes to the continuous high-yield period of the gas field, the world's first commercially developed shale gas field (Barnett) shows a high-yield forecast of 10 × 109 m3 per year for about twenty years. The development of the shale gas field in China is still in the construction stage. (4) In terms of the role of fracture in shale gas preservation and development, the fault has a dual effect on the enrichment of shale gas. In the United States, tectonic in the shale gas basin is stable, and faults are few, while structures in China in the shale gas basin are active, and faults are developed. Therefore, faults have more harm than good to the shale gas in China, which caused the fragmentation of the continuously distributed Wufeng-Longmaxi formations, limiting the area of the gas field.

Natural gas measurement technology system and its prospect in China

Natural gas measurement is an important basic job in national, social and economic development, and accurate and reliable measurement is an important guarantee for promoting the rapid development of natural gas industry in China. In this paper, the importance and characteristics of natural gas measurement were analyzed. Then, domestic and foreign natural gas measurement technologies were analyzed and compared from the aspects of measurement technological standard system, measuring instrument application technology, custody transfer metering mode in natural gas trade, measurement value traceability system and measurement management. Finally, the development of domestic natural gas flow metering technologies was summarized and predicted. And the following research results were obtained. First, natural gas measurement is a kind of large-quantity dynamic gas measurement with compressible medium, and the measurement result is derived from the flow rate, composition, temperature, pressure and other data under working conditions. Therefore, the accuracy of the measurement results cannot be guaranteed unless each basic data is measured accurately. Second, a natural gas measurement technology system has been established in China, including measurement laws and regulations, measurement technological standards and specifications, measurement value traceability technology, measuring tool application technology and measurement management system. Third, with the high-quality rapid development of domestic natural gas industry, China's natural gas measurement technology system will get improved continuously and be in line with international standards further. The guarantee for the reliability of measuring instrument may be transformed from compulsory verification to traceability based on verification or calibration, and the nationalization process of measuring tools will be sped up. In addition, the metering mode in natural gas trade will be changed greatly from volume measurement to energy measurement. In conclusion, China's natural gas measurement technology system basically guarantees the rapid development of its natural gas industry, but it still needs further improvement and completion.

Would environmental regulation improve the greenhouse gas benefits of natural gas use? A Chinese case study

Abstract Along with rapidly increasing natural gas consumption and carbon dioxide (CO2) levels and the gradually strengthening environmental regulation, further investigation of the emission-natural gas-environmental regulation nexus in China is particularly useful for mitigating the country's CO2 emissions. To empirically investigate whether environmental regulation improves the greenhouse gas benefits of natural gas use in China, this study investigates the causal relationships among CO2 emissions, natural gas consumption, and environmental regulation in China, based on panel data of China's 30 provinces covering 2005–2015. Fully considering the potential cross-sectional dependence, the system general method of moments (SYS-GMM) estimation method is utilized. The empirical results reveal that: (1) Environmental Kuznets curve (EKC) hypothesis for CO2 emissions is valid in China; (2) environmental regulation will not only directly affect CO2 emissions, but also indirectly affect CO2 emissions by influencing the energy consumption structure; (3) environmental regulation cannot significantly improve the greenhouse gas benefits of natural gas use, as environmental regulation in China can indirectly reduce CO2 emissions by decreasing coal consumption rather than increasing natural gas consumption; and (4) the causality analysis for three regions confirms the existence of significant regional differences. These findings offer several targeted policies for reducing CO2 emissions and promoting growth in the natural gas industry in China.

Underground coal gasification and its strategic significance to the development of natural gas industry in China

Abstract Based on the present situation and trend of underground coal gasification in China and overseas, this article puts forward the basic concept, mechanism and mode of underground coal gasification, and presents the challenges, development potential and development path now faced. In China, underground coal gasification which is in accord with the clean utilization of coal can produce “artificial gas”, which provides a new strategic approach to supply methane and hydrogen with Chinese characteristics before new energy sources offer large-scale supply. Coal measure strata in oil-bearing basins are developed in China, with 3.77 trillion tons coal reserves for the buried depth of 1 000−3 000 m. It is initially expected that the amount of natural gas resources from underground coal gasification to be 272−332 trillion cubic meters, which are about triple the sum of conventional natural gas, or equivalent to the total unconventional natural gas resources. According to the differences of coal reaction mechanism and product composition of underground coal gasification, the underground coal gasification can be divided into three development modes, hydrogen-rich in shallow, methane-rich in medium and deep, supercritical hydrogen-rich in deep. Beyond the scope of underground mining of coal enterprises, petroleum and petrochemical enterprises can take their own integration advantages of technologies, pipeline, market and so on, to develop underground coal gasification business based on their different needs and technical maturity, to effectively exploit a large amount of coal resources cleanly and to alleviate the tight supply of natural gas. It can also be combined with using the produced hydrogen in nearby area and the CO2 flooding and storage in adjacent oil areas to create a demonstration zone for net zero emissions of petroleum and petrochemical recycling economy. It is significant for reserving resources and technologies for the coming “hydrogen economy” era, and opening up a new path for China’s “clean, low carbon, safe and efficient” modern energy system construction.

Establishment of coal-derived gas geological theory and its strategic significance to the development of natural gas industry in China

Establishment of coal-derived gas geological theory and its strategic significance to the development of natural gas industry in China

Challenges to and proposals for underground gas storage (UGS) business in China

Underground gas storage (UGS) is one of the major storage and peak-shaving means in the world among numerous storage ways via gas fields, small-scale LNG, etc. With the rapid development of natural gas industry in China, the seasonal peak-shaving issues are increasingly prominent, so how to achieve sustainable development of UGS business has become a major problem at present. In view of this, we studied the present status and trend of UGS development abroad and analyzed the following challenges encountered by UGS in China. (1) UGS construction falls behind the world and peak-shaving capacity is insufficient. (2) There is lack of quality gas sources for storage and the complicated geological conditions make the cost of UGS construction high. (3) UGS construction is still at the preliminary stage, so experience is not enough in safety and scientific operation and management. (4) UGS construction, management and operation are not unified as a whole, so its maximum efficiency fails to be exerted. (5) The economic benefit of UGS is difficult to be shown without independent cost accounting. Based on the experience of other countries, some proposals were put forward on UGS development under the actual present situation: to strengthen strategic UGS layout, intensify storage site screening in key areas and steadily promote UGS construction; to establish professional UGS technical and management teams and intensify the research of key technologies; and to set up a complete and rationally-distributed UGS construction, operation and management system.