Analysis of current situation and trends in development of coal-based synthetic natural gas industry in China
China has initiated coal-based synthetic natural gas(SNG)demonstration projects since the"Eleventh Five-Year Plan".Environmental issues and economic viability have long been critical challenges restricting the development of the coal-based SNG industry.With the carbon peaking and carbon neutrality goals,there is enormous growth potential in China's natural gas consumption from 2035 to 2040.Fluctuations in the international natural gas market have further heightened demands for supply security.As a significant form of modern coal chemical industry,coal-based SNG is conducive to promoting the clean and low-carbon utilization of coal.The opportunities and challenges in China's coal-based SNG industry were analyzed.The diversification of natural gas supply and the requirement of secure reserves present a historic opportunity for the coal-based SNG industry.However,challenges such as weak competitiveness in end markets and environmental issues,including high carbon emissions,pose long-term obstacles to the industry.The production costs of coal-based SNG and the comprehensive costs to reach the end market were analyzed.Economic comparisons were made with other gas sources within three natural gas regional markets:Bohai Rim,Yangtze River Delta,and Central China.Considering the increasing trend in coal-based SNG production capacity and supply capabilities,it is projected that the demand for the coal-based SNG market in China will rise before 2030.Coal-based SNG will play a crucial role in providing abundant terminal gas sources and emergency supply.
coal-based synthetic natural gasnatural gas reserveeconomic viabilitycarbon emissionsdemand forecast