China Aims to Hike Domestic Gas Supplies to 420 Bcm Per Year by 2020

China will hike its natural gas supply to as much as 420 billion cubic meters per year by 2020 amid rising demand, news agency Xinhua reported earlier this week citing a government statement.

In addition to cater to the rising urban demand for natural gas, efforts to boost gas supplies is also aimed at mitigating air pollution stemming from an over-reliance on coal, the government said.

To expand natural gas production, investment in gas storage facilities as well as their construction and operation will be open to all market players, the statement said, Xinhua reported.

Meanwhile, companies will also have the option to issue bonds to raise capital for the construction of storage facilities. The government will offer favorable land policies for storage facility projects, the statement said.

Data showed that natural gas consumption in China hit nearly 170 billion cubic meters last year, added Xinhua.