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"Coal to gas" effect gradually emerges, Jiangsu ranks first in natural gas consumption nationwide

date:2020-07-10 16:41:22    

Last year, three ministries and commissions jointly issued a letter of opinion that clearly raised the issue of cultivating natural gas as the main driving force for modern times. Now Jiangsu is the country's natural gas consumer, and the role of "coal to gas" gradually emerges.

The China Petroleum East Corporation’s gas power generation business held in Yangzhou jointly launched a forum to convey the message that in the future, natural gas power generation will play an increasingly important role in my country’s power industry.

Jiangsu's natural gas consumption ranks first in the country

"As a low-carbon power, compared with coal, oil and other fossil power, natural gas is cleaner and more efficient; compared with renewable power, natural gas as a power supply is more stable and more sophisticated." Moderator Chi Guo, assistant to the chairman of the China Gas Association Jingkai Zongmingyi.

Last year, 13 ministries and commissions of the country jointly issued the "Opinions on Accelerating the Use of Natural Gas", which clearly proposed that natural gas be cultivated as a modern clean subject. In the same year, domestic natural gas consumption was 235.5 billion cubic meters, an increase of 17.1% year-on-year, and the annual consumption increase exceeded 34 billion cubic meters, a record high.

"Affected by favorable factors such as the improvement of the microeconomic situation, the promotion of environmental protection policies and the rise in the price of alternative power, natural gas consumption has returned to double-digit increases, which also clarifies that the role of'coal to gas' in various regions is gradually flashing." Zhang Yuqing, former deputy director of the National Power Bureau Analysis said.

PetroChina Natural Gas Sales Eastern Company covers five provinces and one city in Lu, Henan, Jiangsu, Anhui, Zhejiang and Shanghai, with a market share of over 60%. The company's general manager Hou Chuangye introduced that last year, the company sold more than 40 billion cubic meters of natural gas, a year-on-year increase of 6.2 billion cubic meters, an increase of 18.4%, achieving the highest growth rate in recent years.

Jiangsu Natural Gas has covered more than 70% of counties in the province, with a total consumption of 21.7 billion cubic meters, ranking first in the country. Li Qiang, deputy director of the Provincial Economic and Information Commission, explained that Jiangsu's economy is booming, the township rate is close to 70%, and the total demand for electricity is large. However, on the supply side, our province lacks an impetus to achieve green and low-carbon development and meet the needs of local economic development. It is an inevitable choice and an important way to develop gas-fired power generation and gas-fired units. According to statistics, by the end of March, the installed capacity of gas turbines in Jiangsu reached 13.716 million kilowatts, ranking the first in the country. Since 2015, Jinling Gas Turbine has replaced the Nanjing No. 2 Thermal Power Plant for heating and power generation, reducing raw coal by approximately 650,000 tons per year.

The challenge of gas power generation is great

Township gas, gas-fired power generation, industrial fuel and transportation fuel are four major categories of natural gas consumption increase in my country. Different from township gas affairs, the domestic natural gas power generation opportunities are distributed in the Yangtze River Delta, Bohai Rim and Pearl River Delta regions. Gas-fired power plants have the characteristics of high conversion efficiency, low environmental pollution, sensitive operation, suitable for peak shaving, etc., small footprint, good environmental compatibility, and low water consumption. However, because China has not completely grasped the core technology of the gas turbine, the overhaul maintenance and protection, transformation and upgrading, and component replacement all rely on the original foreign manufacturers, and the cost is high. For example, the cost of an F-level gas turbine maintenance and protection needs 25 million yuan -3000 yuan per year. Ten thousand yuan. A sharp contrast is that the cost of gas-fired power plant equipment in my country is about the same as that of coal-fired power plants, while the cost of gas-fired power equipment in the United States is only 1/3 of coal-fired power plants.

The high gas price and lack of market competitiveness is another inherent disadvantage. Huadian Jiangsu Power Co., Ltd. is operating 19 gas turbines, accounting for nearly half of the gas turbine capacity in Jiangsu Province. Yang Huixin, deputy general manager of the company, told reporters, "Coal generators generate electricity once, and the cost is two cents, and the power generation of gas turbines will roughly double."

Lu Zhiqing, general manager of Jiangsu Huadian Qishuyan Power Generation Co., Ltd. introduced that gas units are sensitive to start and stop, which is convenient for power generation and peak shaving. In the first quarter of this year, the company's gas turbines have been started and stopped 117 times. He bluntly said: "A start and stop operation is equivalent to 20 hours of operation, which accelerates the wear of the equipment, and the two-year repair is changed to the one-year repair, and the pressure is greater."

Several CEOs of gas-fired power companies pointed out that the relatively high cost and non-market factors are weakening the peak shaving and environmental protection value of gas-fired power generation.

Wu Libo, director of the Center for Power Economics and Development Strategy at Fudan University, advocated that in view of the many obstacles at this stage, the government should introduce environmental taxes as soon as possible, adjust taxation on the environmental externalities of coal power, and plan to implement a payment transfer mechanism to solve the local government’s Sustainability issues of gas-fired power plant on-line subsidies; on the other hand, the supply and demand mechanism of natural gas power generation should be marketed as soon as possible, through multi-area equipment, cross-type equipment, direct purchase by large users, net electricity measurement and other means to ensure The industry develops healthily.

Jiangsu's "air outlet" seizes the "gate"

As China joins the Paris Agreement and makes a promise that the carbon dioxide emissions per unit of GDP in 2030 will fall by 60% to 65% compared with 2005, the proportion of natural gas in China's power consumption will continue to increase.
 

my country's installed power capacity has ranked first in the world, and natural gas power generation is still in its infancy, accounting for only about 6% of the primary power structure, which is lower than the world average. According to the development policy, by 2020, natural gas will strive to account for about 10% of the primary power consumption structure, becoming the third largest power after coal and oil.

"With Jiangsu, Shanghai and Zhejiang promulgating gas-grid on-grid tariff rules, other provinces are gradually establishing gas-grid on-grid tariff pricing mechanisms." Hou Chuangye indicated that China's gas-fired power generation is ushering in a "golden opportunity period".

In the context of the prominent ecological constraints, the “air outlet” on the Jiangsu station seized the “gate”. Last year, Jiangsu’s gas-fired power generation used 8.2 billion cubic meters, accounting for 37.6% of the province’s total natural gas consumption, nearly double the domestic average of 19.9%. Yuan Huanming, deputy director of the Provincial Power Bureau, stated that according to the province’s “13th Five-Year Plan” natural gas development special plan, by 2020, the province’s natural gas power generation installed capacity will exceed 20 million kilowatts, accounting for about 15% of the total power generation installed capacity. The proportion of coal-fired power installed capacity dropped to 63%. At that time, Jiangsu's power generation gas consumption will reach about 17 billion cubic meters.


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