Strong demand for natural gas equipment has given rise to a billion dollar market
Release time ：
2015-07-07
At a time when new trends in natural gas cooperation between China and Russia have been repeatedly reported, equipment companies related to natural gas transportation, storage, and utilization have once again received attention from the capital market. In the next three years, China's natural gas supply capacity will increase by about 70%, imported natural gas will double, and the new demand for gas storage equipment alone will reach 30-50 billion yuan. Coupled with the larger demand for transportation and terminal applications, the relevant market level is over 100 billion yuan. At a time when many traditional industries are facing overcapacity and weak demand growth, the natural gas equipment industry has entered the "fast lane".
At a time when new trends in natural gas cooperation between China and Russia have been repeatedly reported, equipment companies related to natural gas transportation, storage, and utilization have once again received attention from the capital market. In the next three years, China's natural gas supply capacity will increase by about 70%, imported natural gas will double, and the new demand for gas storage equipment alone will reach 30-50 billion yuan. Coupled with the larger demand for transportation and terminal applications, the relevant market level is over 100 billion yuan. At a time when many traditional industries are facing overcapacity and weak demand growth, the natural gas equipment industry has entered the "fast lane".
The natural gas industry has entered the "fast lane" of development
The latest news shows that Vice Foreign Minister Cheng Guoping revealed on the 20th that China and Russia have reached a principled consensus and made breakthrough progress in building the East Line natural gas pipeline. Behind this diplomatic achievement is the increasing domestic demand for natural gas and the increase in investment in the natural gas industry.
According to relevant data, last year's domestic natural gas production reached 107.7 billion cubic meters, an increase of 6.5% year-on-year; The import volume of natural gas (including liquefied natural gas) reached 42.5 billion cubic meters, an increase of 31.1%. According to the 12th Five Year Plan for Natural Gas Development, by 2015, the domestic natural gas supply capacity will reach 176 billion cubic meters, with an annual imported natural gas volume of approximately 93.5 billion cubic meters. This means an astonishing annual growth rate.
Another data that cannot be ignored is that by 2015, the population of natural gas users in cities and counties in China reached approximately 250 million, accounting for 18% of the total population. In addition, in order to improve energy structure and control air pollution, senior officials of the National Energy Administration recently stated that they will control the total amount of coal consumption and form a "forced mechanism". This also opens up space for natural gas applications. At the same time, due to the prominent contradiction between supply and demand, the call for natural gas price reform is also increasing, and even some institutions have judged that the possibility of starting this year is very high.
In summary, it can be seen that both from the perspective of improving energy structure and urbanization demand, the increasing investment in natural gas and the urgent need for price changes have made natural gas one of the most important investment "mainlines" in the domestic energy field in the coming years.
The market prospects for transportation, storage, and usage equipment are broad
Various signs indicate that against the backdrop of the continuously improving prosperity of the natural gas industry, relevant enterprises in the industry chain will also share this "feast" for a long time. Due to the fact that the supply and demand of natural gas as an energy source largely depend on its transportation status, pipeline and liquefied natural gas (LNG) supply have become quite important links, in addition to the need to increase the exploration and extraction efforts in the upstream; At the same time, with the increasing demand for natural gas, there are also broad prospects in the terminal sector.
In terms of pipeline network construction, as of the end of 2010, the length of China's natural gas main pipeline reached 40000 kilometers. According to the 12th Five Year Plan for natural gas, China will build 44000 kilometers of new natural gas pipelines (including branch lines), with an additional trunk pipeline capacity of approximately 150 billion cubic meters per year.
In addition to being supplied through pipelines, LNG conversion supply will also become a supplement. The industrial chain model is that imported LNG is sold directly to end users in liquid form without being gasified or entering the natural gas pipeline network.
The natural gas industry has entered the "fast lane" of development
The latest news shows that Vice Foreign Minister Cheng Guoping revealed on the 20th that China and Russia have reached a principled consensus and made breakthrough progress in building the East Line natural gas pipeline. Behind this diplomatic achievement is the increasing domestic demand for natural gas and the increase in investment in the natural gas industry.
According to relevant data, last year's domestic natural gas production reached 107.7 billion cubic meters, an increase of 6.5% year-on-year; The import volume of natural gas (including liquefied natural gas) reached 42.5 billion cubic meters, an increase of 31.1%. According to the 12th Five Year Plan for Natural Gas Development, by 2015, the domestic natural gas supply capacity will reach 176 billion cubic meters, with an annual imported natural gas volume of approximately 93.5 billion cubic meters. This means an astonishing annual growth rate.
Another data that cannot be ignored is that by 2015, the population of natural gas users in cities and counties in China reached approximately 250 million, accounting for 18% of the total population. In addition, in order to improve energy structure and control air pollution, senior officials of the National Energy Administration recently stated that they will control the total amount of coal consumption and form a "forced mechanism". This also opens up space for natural gas applications. At the same time, due to the prominent contradiction between supply and demand, the call for natural gas price reform is also increasing, and even some institutions have judged that the possibility of starting this year is very high.
In summary, it can be seen that both from the perspective of improving energy structure and urbanization demand, the increasing investment in natural gas and the urgent need for price changes have made natural gas one of the most important investment "mainlines" in the domestic energy field in the coming years.
The market prospects for transportation, storage, and usage equipment are broad
Various signs indicate that against the backdrop of the continuously improving prosperity of the natural gas industry, relevant enterprises in the industry chain will also share this "feast" for a long time. Due to the fact that the supply and demand of natural gas as an energy source largely depend on its transportation status, pipeline and liquefied natural gas (LNG) supply have become quite important links, in addition to the need to increase the exploration and extraction efforts in the upstream; At the same time, with the increasing demand for natural gas, there are also broad prospects in the terminal sector.
In terms of pipeline network construction, as of the end of 2010, the length of China's natural gas main pipeline reached 40000 kilometers. According to the 12th Five Year Plan for natural gas, China will build 44000 kilometers of new natural gas pipelines (including branch lines), with an additional trunk pipeline capacity of approximately 150 billion cubic meters per year.
In addition to being supplied through pipelines, LNG conversion supply will also become a supplement. The industrial chain model is that imported LNG is sold directly to end users in liquid form without being gasified or entering the natural gas pipeline network.