Energy storage and natural gas

Why does China need a strategic gas storage facility?

China's NGM is highly dependent on external gas markets and countries. Once the major source countries stop supplying natural gas to China, serious energy problems will occur in this country. Therefore, China needs to learn from the experience of developed countries, to strengthen the construction of strategic gas storage facilities.

How to determine the price of natural gas storage services?

The gas storage cost includes invest costs and reasonable returns. In order to promote the development of natural gas storages, the developed countries also use the market-oriented pricing method to determine the price of gas storage services. The market-oriented gas storage price should be closely scrutinized by price regulatory authorities.

Should natural gas enterprises establish their own natural gas reserves?

Natural gas enterprises should establish their own natural gas reserves. By 2020, the enterprise's natural gas reserves should not be less than 10% of its annual sales volume. Local governments should promote the construction of gas storage and peak-shaving facilities such as LNG and CNG, and organize the compilation of gas emergency plans.

Why do we need a gas storage facility in winter?

In accordance with the space heating demand, the NGC in winter in northern China is much larger than that in summer. Consequently, gas storage facilities are necessary to store the remaining natural gas in the summer and redistribute it in winter.

What is hydrate-based gas storage?

Traditional methods like liquefaction and compression face high energy and safety challenges, prompting the exploration of new solutions. Among these, hydrate-based gas storage stands out for its environmental benefits, using clathrate hydrates to store gas with low energy consumption and carbon emissions.

How can a gas storage company make a profit in China?

The government allows UGS operators to make profits by providing gas storage and load shaving services. The service price and sales price of the natural gas provided by gas storages should be market-oriented. In China, UGS has the characteristics of a large investment, long construction period and high operation and maintenance costs.