• 7 minutes Does S Arabia Have 2 Mln Barrels in Spare Capacity?
  • 11 minutes Oil prices going down
  • 19 minutes Venezuela, the largest oil reserve in the world, faces deep shortages of motor oil
  • 4 mins 67.50 was the low for now, $70 - $76+ back in play
  • 16 hours Chile Becomes The Latest Country To Commit To 100% Renewables
  • 23 hours EU And Japan Sign Historic Free Trade Deal
  • 22 hours Where 3 Million Electric Vehicle Batteries Will Go When They Retire?
  • 3 hours Daimler and BMW Will Beat Tesla in EV Race
  • 1 day Germany: We Can No Longer Fully Rely On U.S. White House
  • 2 days Well from $74 we hit 67.xx now what?
  • 1 day Chartist predicting a $1 fall, after WTI drops $10
  • 23 hours China’s Technology Sector Takes On Silicon Valley
  • 2 days Trade War of 1930s, Extended the Great Depression
  • 1 day Trump-Putin Helsinki Summit And Oil Prices
  • 2 days U.S. Challenges 5 WTO Members imposing Illegal Tariffs Against U.S. Products
  • 2 days Rio Tinto Says $4-Million Goodbye to Coal
  • 2 days Iran's President Warns Over U.S. Push For Countries To Stop Buying Oil From Iran
Trump’s European Gas Plans Aren’t Realistic

Trump’s European Gas Plans Aren’t Realistic

Monday’s meeting between U.S. President…

Yamal LNG Is Conquering China

Yamal LNG Is Conquering China

While many expected deliveries to…

China’s Coal-To-Gas Transition Sputters

natural gas

China’s ambitious program to shift from coal to gas is showing more signs of stuttering as the province of Hebei this week stopped a program that envisaged the conversion of many coal-fired boilers to gas. The program has been shelved until 2020, when additional gas import capacity from Russia will be ready.

This is the latest indication that Beijing may have rushed into this shift, neglecting the fact that such a large-scale transition needs adequate gas distribution capacity. Last month, millions of people as well as some businesses in the northern parts of the country suffered electricity and heating shortages as Beijing ordered several million households plus a number of industrial businesses to switch from coal to gas for heating and electricity in an attempt to reduce pollution.

Then earlier this month, four regional utilities warned in a letter to the government that there will be more shortages if Beijing doesn’t take care to increase the supply of coal and put a lid on fast-rising prices. “If the coal inventories don’t rise to a reasonable level by Spring Festival, then it will be really difficult to deal with the drop in temperatures in some key regions and in the winter heating regions,” the companies said.

Hebei has been at the forefront of the transition program because it is around Beijing and because its coal use was much higher than the national average, at 86.6 percent in 2015 versus a national average of 63 percent. Last year, the local authorities converted more than 2.5 million households to gas and electricity heating from coal as part of efforts to reduce its contribution to China’s pollution problem.

Yet, like elsewhere in China, Hebei has its problems with insufficient gas distribution infrastructure, which in December forced the government to allow the use of coal for heating purposes. According to gas suppliers, it was lack of communication between the government and the industry that led to these inadequacies as it led the government to underestimate demand.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News