Domestic oil and gas firms invested RMB370 billion, up 19% YoY, in exploration and development in 2022, with development investment reaching RMB286 billion and exploration investment hitting an all-time high of around RMB84 billion, as detailed in China Natural Gas Development Report 2023, showing significant breakthroughs in the areas of super deep layer, deep water, shale gas, coalbed methane, etc.
Domestic output of natural gas was up 6% YoY to 220.1 billion cubic meters in 2022, up more than 10 billion cubic meters for six consecutive years. Around 42% was consumed by industrial fuel industry, 17% by power generation and 8% by chemical industry. In H1 2023, domestic consumption of natural gas was up 5.6% YoY to 194.1 billion cubic meters, output up 5.4% YoY to 115.5 billion cubic meters and import volume up 5.8% YoY to 79.4 billion cubic meters. Domestic demand for natural gas will rebound continually in H2 2023. Annual natural gas consumption is forecast to increase 5.5%-7% YoY to 385-390 billion cubic meters.