Nature Gas is universally recognized as a clean energy in the world. Emission of carbon dioxide and Nox produced from burning only amounts to 50% and 20% of that of coal respectively, and pollution produced by burning of nature gas is only 1/4 corresponding to petroleum and 1/800 compared to coa.
China will have a strong demand for consumption of natural gas. At present, natural gas only represents 3 percent of energy consumption in China, while in the developed countries it represents an average 22 percent of energy consumption.
China covers a 3 million square kilometer offshore area with an abundant reserve of gas resources. Researches conducted by Chinese ocean geologists through many years prove that there are seven gas-bearing prospect basins with 14000 billion cubic meter gas resources and 5000 billion cubic meter resources of economic values in China coastal offshore areas. Nansha Basin, with a very promising prospect, is particularly rich in gas reserves, which amounts to 8000 to 10000 billion cubic meters. At present, China National Offshore Oil Corp.( CNOOC) has listed the development of natural gas as one of its major priorities.
Offshore nature gas went ashore at an earlier time and has been transmitted to coastal areas like Liaoning Province, Hainan Province, etc. for Industrial use and town gas as a clean energy. It helped to optimize town fuel consumption structure and made noticeable contribution to promote environment protection and improve living standards in urban areas.
Liaoning Province : JZ20-2 Condensate Gas Field is the first gas field in offshore China, which has a steady supply capacity of 400 million cubic meter high quality gas to Liaoning Province annually for consecutive 20 years through a 48-km sub sea pipeline. Liaoning has utilized offshore gas to establish a plant, Jingzhou Gas Chemical Plant, annually producing 520,000 tons of urea and 300,000 tons of synthetic ammonia, partially for civil use.
Tianjin: Boxi Gas Field was set up and brought into production on January 1, 1998. Every year 100 million cubic meter gas was steadily transmitted to Tanggu, Tianjin through a 46-km sub sea pipeline. Today, 200,000 local residents are benefiting from the clean gas. Besides, the municipality has built a gas-generated power plant by using offshore natural gas. Tianjin Coastal Gas Power Plant officially went into operation on July 1, 1999.
Shanghai: Pinghu Gas Field, located 265 kilometers offshore from Shanghai, was brought into production on November11, 1998. Quite a lot of consumers like Pudong International Airport, Buick car manufacturer and other famous enterprises are now all using nature gas from East China Sea. After full production, Pinghu Gas Field will have a capacity of producing 1.2 million cubic meter gas per day for 15 consecutive years and the gas will be available to altogether one million town gas consumers. Experts estimated that with Pinghu Gas Field going into operation, it would result in a reduction of 13.6 million tons in consumption of standard coal and 43400 tons and 91200 tons in emission of sulfur dioxide and carbon monoxide respectively.
Hainan Province and Hongkong : Yacheng 13-1 Gas Field in South China Sea is located 100 kilometers offshore from Hainan Island. It is the largest gas field in single structure discovered up to date, with a gas reserve of 100 billion cubic meters. It was being jointly developed by CNOOC, ARCO and KUFPEK with an annual gas production of 3.4 billion cubic meters. Two sub sea pipelines from the field were connected to onshore receiving terminals. One was 800 kilometers in length, which supplied 2.9 billion cubic meter gas to CAPCO in HK; the other was 100 kilometers in length, which transmitted gas to Hainan Island for power generation and fertilizer production. Gas from Yacheng13-1 gas field was also supplied to Sanya, a famous tourist city.
Guangxi Zhuang Autonomous Region: Located in Beibu Bay, Wei Xinan Oil Field group was completed and brought into production on June 6,1999. Associated gas from the oil field group was all supplied to Weizhou Island, Beihai. The gas has been used for power generation and chemicals projects, and it will be further used for other gas-consumed projects
CNOOC will build up a transmission grid for natural gas in the coastal areas, covering three economic zones along Bohai Bay, in Yangtze River Delta and Pearl River Delta. Going ashore of natural gas will become an important strategy to meet demand for natural gas consumption in China.