Analysis Report on Shanghai Natural Gas Industry

Shanghai, one of the largest cities in China, is also the largest consumer of natural gas in the East China. The consumption of natural gas has reached 2.4 billion cubic meters in 2006. Currently, the natural gas supply is not adequate enough to meet the increasing demand. More and more users begin to use natural gas, while the number of artificial coal gas users is reducing. Shanghai plans to realize the overall utilization of natural gas by 2010. Pipeline natural gas (PNG) is the main natural gas in Shanghai, and Compressed Natural Gas(CNG) and Vehicle Liquid Natural Gas(LNG) are seldom used now, accounting for about 1% of total consumption. Shanghai high-pressured pipeline transportation network has been formed; storage facilities for emergency, Imported LNG Receiving Station and other infrastructure facilities are in construction. Shanghai will add two natural gas supply source in the following 2 years, i.e. "Sichuan-East Gas Pipeline" and imported LNG. Then, 4 kinds of supply source will be formed. It is anticipated that the supply will almost satisfy the demand in Shanghai after 2010.