PRZOOM - /newswire/ -
Delhi, New Delhi, India, 2007/03/15 - Daqing, the largest but fast-exhausting oilfield of China, is increasingly depending on its recently discovered natural gas reserves to retain its production levels.
The largest oil field in China, Daqing, is depleting fast. So it is increasingly depending on natural gas to maintain its production level. The field, located in Heilongjiang province of China, is building its hopes on recently found deep natural gas reserves that nay be accessed with advanced technologies.
As per the National Development and Reform Commission (NDRC), the principal economic planner, the China Daily reported, “Natural gas will be an important driving force to stabilize Daqing oilfield's production. Daqing has set a target of discovering 200 Billion Cubic Meter of natural gas during the 11th Five Year Plan (2006-10).”
By 2005, Daqing had the proven gas reserves of 400 Billion Cubic Meter but the focus has now shifted to extract deeply stored natural gas with an estimated reserves of 1200 billion cubic meter.
Daqing operator China National Petroleum Corporation (CNPC) hopes that natural gas will account for 9.5% of the total output in 2010, and 22.5% in 2020, the paper reported. The current percentage was not given.
Daqing, that attained near-mythical status during the starting years of communist rule as an example of the Maoist can-do spirit, has been fighting with threats that it might be slowly losing its oil reserves.
CNPC recently said that it plans to expend $32 Billion (250 Billion Yuan) to boost the oil production at main oilfields in the eastern parts of China, while developing potential oilfields in the western parts of the country.
In addition to keeping Daqing in the mainstream, the enhanced reliance on natural gas also matches the China’s energy strategies. China consumes only 3% natural gas in its total fuel consumption as against 20% at global level. Development of LNG as a clean energy alternative is a priority during the 11th Five Year Plan.
The RNCOS report “Liquefied Natural Gas (LNG) in China” states that depleting fossil fuel reserves, rising gas fired power generation, increasing demands, security & diversity of supply issues, and environmental concerns – all are working as basic growth drivers for the China’ LNG industry.
The research report also discusses the detailed overview of China LNG industry, LNG infrastructure, pricing, and supply & demand status in China, factors driving growth in the sector, opportunities and challenges for the sector, and future outlook of the market.
RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.