China's natural gas equipment industry: dual support from supply and demand, with storage, transportation, and exploration equipment leading the way
Release time ：
2015-07-07
Benefiting from national policy support, natural gas, with its multiple advantages such as rich relative reserves, economic efficiency, and environmental friendliness, will increase the proportion of energy consumption structure from 4% to 8% during the 12th Five Year Plan period. We believe that the annual compound growth rate of China's natural gas demand from 2011 to 2015 will reach 19%.
Benefiting from national policy support, natural gas, with its multiple advantages such as rich relative reserves, economic efficiency, and environmental friendliness, will increase the proportion of energy consumption structure from 4% to 8% during the 12th Five Year Plan period. We believe that the annual compound growth rate of China's natural gas demand from 2011 to 2015 will reach 19%. The expansion of long-distance pipelines in the past has broken through long-term supply bottlenecks. In the future, the strengthening of domestic conventional and unconventional natural gas extraction efforts, pipeline natural gas imports, and coastal liquefied natural gas (LNG) imports will jointly support the rapid growth of natural gas consumption demand. We believe that the natural gas industry value chain will usher in a new round of significant development under the dual support of supply and demand, and in the context of overall economic growth and policy uncertainty, this development will bring full investment opportunities. At the same time, we believe that the opportunities in the industrial chain will gradually shift upward from the middle and downstream, and natural gas storage and application equipment represented by LNG and natural gas exploration and development equipment represented by fracturing will achieve expansion higher than the industry average. Our first choice is to buy Furui Tezhuang, Zhongji Anruike, and Jerry Shares.