China CNG (compressed natural gas) Market Analysis

This report is related to China CNG (compressed natural gas) filling machine market analysis. Please also see the description of the CNG filling machine report.

In terms of natural gas resource, China ranks No.10 in the world, accounting for nearly 2 percent of the world's total natural gas resource.

Instead of growing slowly like previous years, natural gas output in the world rose dramatically by 6.78 percent in 2008, hitting 3.0501 trillion cubic meters. Natural gas output in Asia continued to maintain a steady and rapid momentum, registering a growth rate of 6.59 percent in 2008 and an average of 5 percent over the past few years.

In the past twenty years, the world demand for natural gas has been in steady rise, with an annual growth rate of 2 percent. In recent years, China's natural gas consumption has experienced tremendous growth. Annual growth rate is 14.4 percent from 2000 to 2008. As China's economy continues to grow and the process of industrialization deepens, the Chinese market will generate an ever increasing demand for clean energies. This bodes well for the future development of China's natural gas industry.

Compressed natural gas is widely used in the following three sectors: residential districts, the heating and cooling industries, vehicles and industrial users. Of these areas, the vehicle industry draws the most attention.

The number of vehicles in China increases dramatically by more than 1 million a year. The rapid increase in vehicle population, together with shortages of oil resources and grim situation of environmental protection, determines that developing natural gas vehicles will be an important means to tackle energy and environment issues. Since 2002, the number of natural gas vehicles in China has grown tremendously. From the perspective of overall planning for Chinese natural gas development, and on the basis of the existing 60-plus cities which already possess natural gas infrastructure, the number of cities with infrastructure will swell to 270 by 2010. By the mid-21st century, 65% of all Chinese cities will be connected to natural gas. In addition, local government at all levels is very active at developing natural gas. This shows that whether in terms of downstream market space or upstream resource reserves, the conditions are good for major development in natural gas.

Natural gas will play a dominant role in China's future energy development. To realize sustainable development, China came up with an energy structure optimization strategy at the turn of century. The country's gas fields are currently in their early stages of development. Accelerating prospecting, exploration and pipeline network construction will possibly help produce more natural gas to meet domestic demand and even partially replace oil as a major fuel, thus greatly ensuring China's energy supply security. By 2020, the ratio of natural gas in China's total primary energy will reach 12 percent. China's compressed natural gas market has a promising future.

China CNG (compressed natural gas) market analysis is an invaluable asset for anyone who wants to invest in the compressed natural gas market, to import into/from China, to build factories in China, to partner with one of the key Chinese corporations, or to compete in the segment. The report provides in-depth analysis and detailed insight into the compressed natural gas market, market drivers, key enterprises and their strategies, as well as technologies and investment status, risks and trends. The compressed natural gas segment will create huge opportunities for investments, market shares, partnerships, and jobs.

Data sources: National statistics organizations, market research (monitoring) centers, industry associations (institutes), import/export statistics organizations.

Data periods: Recent 3 to 5 years.