China’s largest oil company aims for 50% natural gas by 2020

China’s largest oil company aims for 50% natural gas by 2020

China’s largest oil company, PetroChina Co. aims to increase natural gas as a share of its production from the current 37%, according to the company’s President Wang Dongjin.

PetroChina supports the government’s efforts to liberalise gas prices and implement market-based reforms.

China is looking to raise the share of less-polluting natural gas in its energy mix to 10% by 2020.

The world’s largest energy consumer cut gas prices twice last year in an attempt to boost demand.

China’s natural gas use rose 9.8% in the first half of this year, while the demand growth for oil has slowed.

PetroChina plans to raise output by nearly 30% to produce more than 300 million tonnes of oil and gas equivalent by 2030, with half of its projects coming from overseas.

According to the company’s interim report, 14.4% of its output came from overseas in the first half of 2016.

“The target should be very achievable based on our current overseas oil and gas equity reserves,” Wang said. “The pace of overseas oil and gas production growth will also be affected by factors including crude price when we make investment decisions.”

@RGNOnline