Natural Gas Production and Distribution Industry Research Report – Now Available from IBISWorld

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Revenue for the Natural Gas Production and Distribution industry in China has been growing at an annualized rate of 18.2% to $65.1 billion in the five years through 2013. In pursuit of an environmentally friendly society, the Chinese government has been promoting natural gas by constructing pipelines and introducing new applications for the energy source.

IBISWorld industry market research
Severe urban air pollution in China drives use of natural gas as a low-polluting energy alternative.

Revenue for the Natural Gas Production and Distribution industry in China has been growing at an annualized rate of 18.2% to $65.1 billion in the five years through 2013. In pursuit of an environmentally friendly society, the Chinese government has been promoting natural gas by constructing pipelines and introducing new applications for the energy source.

Other demand drivers for the Natural Gas Production and Distribution industry have been increased real estate development, which caused the number of household gas users to rise, and power factories increasing their consumption of natural gas. The consecutive days of severe air pollution at the start of 2013 also stimulated the government to promote gas consumption as a replacement to other more polluting energies.

Industry concentration is low, with the top four enterprises – Shanghai Gas, Beijing Enterprises Group, Wushenqi Natural Gas, and Guangdong Dapeng LNG Company – accounting for an expected 22.5% of total industry revenue in 2013. Firms in this industry are largely confined to local regions and operate exclusively, as businesses that store and distribute fuel gas must be located close to gas-producing sites or gas-importing wharves. Additionally, government energy policies restrict companies in certain regions. For example, pipeline gas distribution operations must be exclusively run by state-owned enterprises – one per designated region.

Domestic demand for liquid petroleum gas (LPG) and liquid natural gas (LNG) is forecast to increase steadily over the next five years; however, price controls will limit industry revenue and profit growth, says IBISWorld. China's new Energy Law is expected to give more support to the development of this industry, spurring growth in the early part of the next five years. In addition, new phases of the Sichuan-East Natural Gas Transmission Project and the West-East Natural Gas Transmission Project will be completed over the period. These projects will support the development of the industry in East China, South West China and North West China.

For more information, visit IBISWorld’s Natural Gas Production and Distribution in China industry report page.

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IBISWorld Industry Report Key Topics

The Natural Gas Production and Distribution industry comprises businesses that transmit, distribute, and sell self-produced or purchased fuel gas. The production activities of this industry include coal gasification, petroleum cracking, gas extraction, and natural gas refinement. Natural gas mining, bottled petroleum gas retailing, and pipeline fuel gas transmission are not included in this industry.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.

Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Danielle Goodman
IBISWorld
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