China’s latest half-a-trillion-dollar commitment and total investment in renewables will only boost the need for gas in the country as stated by the Sino Gas and Energy, the country’s only ASX-listed Chinese gas producer, according to The Australian.
Last week, China announced its plans for massive investments in the renewable energy sector as part of its efforts to ease the country’s chronic pollution problems. The said plans will directly benefit Sino Gas and Energy, according to Glenn Corrie, the company’s Beijing-based managing director. And with China’s huge energy requirements, it will also mean bigger amounts of gas would be needed to help with the transition away from traditional coal.
The country’s energy agency last week stated that the country would spend around US$360 billion between now and 2020 on renewable energy sources like solar and wind in China’s latest attempt to ease the smog problem in Beijing and other major cities.
Power percentage generated by coal is predicted to fall under the plan, while the share of gas in the Chinese energy market is expected to double from less than 6% to 10%. The latest strategic plans also aim to enhance and increase gas exploration and development, promote gas to be used in power generation and transportation and prioritise deregulation of the gas market.
The company has already benefited from the Chinese government’s requirements for companies to turn to gas, with the Sino Company now selling a big portion of its gas to a nearby aluminium refinery of state-owned giant Chinalco following a decree to convert the facility from coal to gas power.