Gas in the world > Improvements in infrastructure > China and India
China and India
China continues to work on reducing its considerable coal dependency,  with natural gas one of its clearest options.   The country is already ranked among the top 12 worldwide in terms of its gas reserves, and output has increased by almost threefold over nine years. China is developing its LNG offloading capacity and establishing stable gas pipeline connections with the closest producers.

China and India were among the few countries with an important role in the Asian markets to have maintained demand at a reasonable level. It should be pointed out that China announced in late October a major discovery in Chongqing (SW China) of some 120 bcm, one of the largest fields in Asia.

In mid-December the gas pipeline carrying gas from Turkmenistan to China began pumping, tracing its 8000 km route via Uzbekistan and Kazakhstan. Construction on this gas pipeline began in July 2007. It will carry 4.5 bcm per year, reaching full performance by 2013, at which point it will be transporting 40 bcm/year.

China is looking at a reform of its domestic energy market to move gas prices towards a system which takes into consideration the prices of alternative energy sources on the world market (LPG and oil derivatives), although in a gradual manner. The focus is on a market which would better reflect the international prices of each energy source, meaning price rises.

In late September China received its first shipment of LNG from Malaysia at the new Shanghai plant.  The terminal, located in Fujian province, is in the process of expansion, with two new tanks. Forecasts (Energy Information Administration) suggest that Chinese demand for natural gas will increase by 6.4% per year over the decades 2010 to 2020.

The government of India is supporting greater use of natural gas by the fertiliser sector in order to achieve savings on the public expenditure on subsidies for the more expensive naphtha, a goal which it is in part achieving. After the generation sector, fertiliser manufacture accounts for the second-greatest use of natural gas in India.

The government of Papua New Guinea expects to begin LNG exports in 2013-14, if the final investment decision on its first liquefaction plant is subject to no further delays.

Indonesia is one of the countries with the greatest potential to use floating LNG plant technology. The North of Sumatra and Java would be the locations for such facilities, serving areas with considerable potential demand for natural gas.

Australia is seeing considerable development in the gas sector. It is a major producer and its estimated reserves are being substantially upgraded. However, last year two LNG liquefaction plant construction projects were delayed, although the country does already have two complexes, in the North and North West.

Annual Report 2.009: Sedigas - The Spanish Gas Association