China energy report

• The government is opening the upstream hydrocarbon sector to foreign players and liberalising the wholesale and retail markets. It targets more than 20% of clean energy in the energy mix in 2030, including over 50% of the power mix.
• The electricity and hydrocarbon sectors are dominated by large state-owned organisations.
• Covid-19-linked declining earnings and falling coal prices led coal-rich provinces to accelerate consolidation of coal companies to increase efficiency and reduce coal price variations.
• China holds the world's second largest strategic petroleum reserves behind the US.
• Coal still represents 65% of the power mix.
• In January 2020, a market-based system was introduced for industrial electricity users.
• Gas prices in industry are similar to Japan and Korea, but much lower for households.
• The progression of electricity and gas consumption shows double-digit growth and has accelerated since 2017.
• Coal dominates the energy mix (60% in 2019), but its share is decreasing rapidly (-10 points since 2010).
• Local oil companies have announced significant cuts in their 2020 investment plans due to the COVID-19 pandemic.
• In spite of announced cuts in subsidies, renewables are still attracting investors with large scale projects planned.
• Despite a cap on coal mine production, new projects continue to increase the coal capacity.

• Institutions & Energy Policy

  NEA, National Energy Administration, coordinates the national energy policy, manages energy conservation, and provides guidance about the integrated use of natural resources. It is a department of NDRC, the National Development and Reform Commission of the China State Council.

• Energy Companies

  Oil:

  The oil sector is dominated by four state-owned companies: CNPC (China National Petroleum Corp), Sinopec (China Petroleum and Chemical Corporation), CNOOC (China National Offshore Oil Corporation) and Sinochem (China National Chemical Import & Export Corp). CNPC and Sinopec are vertically integrated.

• Energy Supply

  Oil:

  China is a major oil producer, with about 198 Mt in 2019 (5^th largest worldwide). Oil production increased by an average of 2%/year between 2000 and 2015, but declined by 10% between 2015 and 2018. It slightly rebounded in 2019 (+1%).

• Energy Prices

  Gas:

  Residential gas prices are fixed by local authorities and capped, whereas industry prices are made of a benchmark price component and a fluctuation component (+20% deviation from benchmark price, downwards deviation not limited).

• Energy Consumption

  Total energy consumption per capita was around 2.4 toe/cap in 2019 (3.5 times India's level).

  Graph: CONSUMPTION TRENDS BY ENERGY SOURCE (Mtoe)

  

• Issues & Prospects

  The main priorities are to increase the production and, above all, diversify the supply sources in order to enhance China's energy independence, and to continue the reform of the electricity sector.

• GENERAL OVERVIEW
• INSTITUTIONS AND ENERGY POLICY
• ENERGY COMPANIES
• ENERGY SUPPLY
• ENERGY PRICES
• ENERGY CONSUMPTION
• ISSUES AND PROSPECTS
• DATA TABLES
• ABBREVIATIONS
• GLOSSARY

Download the Table of Contents

Below is a list of the China energy market report graphs:

• GRAPH 1: CO₂-energy emissions (MtCO₂)
• GRAPH 2: Installed Electric capacity by source (2019, %)
• GRAPH 3: Gross power production by source (TWh)
• GRAPH 4: Power generation by source (2019, %)
• GRAPH 5: Gasoline & diesel prices (US$/l)
• GRAPH 6: Electricity prices (US$c/kWh)
• GRAPH 7: Gas prices for industry and households (US$c/kWh GCV)
• GRAPH 8: Consumption trends by energy source (Mtoe)
• GRAPH 9: Total Consumption market share by energy (2019, %)
• GRAPH 10: Final consumption market share by sector (2019, %)
• GRAPH 11: Oil consumption (Mt)
• GRAPH 12: Oil consumption breakdown by sector (2019, %)
• GRAPH 13: Electricity consumption (TWh)
• GRAPH 14: Electricity consumption breakdown by sector (2019,%)
• GRAPH 15: Natural gas consumption (bcm)
• GRAPH 16: Gas consumption breakdown by sector (2019, %)
• GRAPH 17: Coal consumption (Mt)
• GRAPH 18: Coal consumption breakdown by sector (2019, %)

In the China energy market report you will find the following tables:

• Economic Indicators: Annual historical data including population, GDP growth, imports and exports, inflation rate, energy security and efficiency indicators, CO₂ emissions.
• Supply Indicators: Historical data including oil and gas reserves, electric and refining capacity, energy production, power production and external trade. All are detailed by energy source.
• Demand Indicators: Historical data including consumption per inhabitant, consumption trends, total consumption by energy source, final consumption by energy source and sector, and electricity consumption by sector.
• Energy Balances: Single table displaying the overall energy industry balance per annum, also graphically displayed by energy sub-segment.
• Infrastructure Projects: Covers power plant projects by energy, technology, status and operator, gas plant projects by status and operator and LNG contracts.

The China energy market data since 1990 and up to 2019 is included in the Excel file accompanying the China country report.
It showcases the historical evolution, allowing users to easily work with the data.

Key Data included in the excelsheet:

• Economic indicators: Annual historical economic indicators, energy security, energy efficiency and CO₂ emissions.
• Supply indicators: Annual historical reserves, capacity, production and external trade (imports(+) exports(-) balance).
• Demand indicators: Annual historical consumption per capita, consumption trends, total consumption, final consumption (per energy and per sector) and electricity consumption total and per sector.
• Energy Balance: total and per energy.
• China Energy Prices: In addition to the analysis provided on the report we also provided a data set which includes historical details on the China energy prices for the follow items: price of premium gasoline (taxes incl.), price of diesel (taxes incl.), price of electricity in industry (taxes incl.), price of electricity for households (taxes incl.), price of natural gas in industry (taxes incl.), prices of natural gas for households (taxes incl.), spot price of Brent and CO₂ emissions (from fuel combustion).