BEIJING, Sept. 4 -- China has enacted a new industry
policy on natural gas use to address the supply shortage and optimize usage, the
nation's planning agency said yesterday.
The guideline says residential gas use is a top
priority, while usage in petrochemical plants is discouraged, the National
Development and Reform Commission said on its Website.
The policy, described by the NDRC as of "strategic
importance," became effective on Aug. 30 after approval by the State Council.
New methanol projects that use gas as a base will be
barred. Methanol, which can also be derived from coal or crude oil, is an
industrial chemical and a fuel that can be mixed with gasoline and diesel to cut
pollution.
The use of natural gas in other petrochemical
projects and power-generation plants will also be limited or outlawed. For
example, gas-fired power plants will be banned in certain coal-rich regions.
The guideline said urban residential gas use is the
most favored option.
"We have to ensure gas will be first used in the
residential sector," the planning body said.
"We should consider social benefits, environmental
benefits and economic benefits" while deciding where the gas resources should be
used first.
The NDRC said gas use should be well planned for
better conservation and higher usage.
Existing gas-based petrochemical projects, especially
fertilizers, will remain in operation. Those approved and under-construction
projects, which have signed long-term gas-purchase contracts, also won't be
affected, the NDRC said.
China wants cleaner-burning natural gas to account
for 5.3 percent of total primary energy consumption by 2010, up from 2.8 percent
in 2005.
But supply may not catch up with the strong demand,
typically in booming coastal regions.
Several major gas-transport projects have lately been
announced or launched.
Sinopec Corp on Friday started building a 1,702-kilometer
pipeline to transmit gas from the Puguang field in Sichuan Province to Shanghai.
China National Petroleum Corp announced early last
week the route for a mega cross-country gas pipeline, at more than 7,000
kilometers long, to transport Turkmenistan gas via far northwestern Xinjiang
Uygur Autonomous Region to Shanghai in the east and Guangzhou in the south.
(Source: Shanghai Daily)
