14 May 2012 15:17 [Source: ICIS news]
The latest report by industry conglomerate the China Greentech Initiative (CGTI) cites that China’s domestic conventional gas production is “stretched to the limit”, but vast unconventional domestic gas reserves – including shale gas and coal-bed methane – could ease China’s gas shortfall, which is expected to grow ninefold by 2015, PwC said.
However, the report added that the industry would first need to overcome major pricing, regulatory and distribution challenges.
Allan Zhang, director of PwC Sustainability and Climate Change, said: “The basic fact is that to ensure energy security and supply, China has no choice but to develop and use new forms of energy to meet the growing and seemingly insatiable demand.”
“Technological advances over the years have made wider use of unconventional gases possible and opened up new sources of energy supply, although many technical hurdles still exist,” he added.
Zhang said that companies with experience of advanced technologies or management skills in exploring coal-bed methane projects on a large commercial scale will be in a good position in the market.
"The lack of experience and know-how of the Chinese companies in dealing with unconventional energy such as shale gas offer the European and American companies the chance of riding on China's rapid development,” he added.
PwC is a strategic advisor to the CGTI.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections