Compressed natural gas (CNG) market demand is strong and there are opportunities for industry development

Compressed natural gas (CNG) refers to gaseous natural gas compressed to a pressure greater than or equal to 10.0MPa and not greater than 25.0MPa. Compressed natural gas is a colorless, odorless and transparent gas that is lighter than air. Its main components are methane (CH₄), ethane (C2H6), propane (C3H8) and butane (C4H10). Compared with traditional fuels, compressed natural gas has the advantages of low operating cost, green environmental protection, strong adaptability, and can effectively reduce the wear of parts in the engine cylinder, and can be used as vehicle fuel.

Although my country’s oil resource reserves are relatively low, its natural gas reserves are extremely abundant. At present, my country’s proven natural gas reserves are approximately 12.5 trillion cubic meters, ranking sixth in the world. my country’s natural gas resources are mainly distributed in Inner Mongolia, Shaanxi, Gansu, Ningxia, Qinghai, Xinjiang and Sichuan. Natural gas in Shaanxi and Gansu is usually gas field gas with a methane content of more than 98.0%. Against this background, my country’s natural gas production continues to increase. According to data from the National Bureau of Statistics, my country’s natural gas production will reach 0.2 trillion cubic meters in 2021, a year-on-year increase of 8.2%. The sufficient supply of raw materials provides driving force for the development of my country’s compressed natural gas industry.

Natural gas compressors must be used in the preparation process of compressed natural gas to facilitate pressurization, storage and transportation. At present, my country’s natural gas compressors are mainly piston compressors, which are composed of cylinders, valves, pistons, bearings, connecting rods and other components. Driven by market demand, my country’s gas compressor production continues to increase. In 2021, my country’s gas compressor output will reach 490 million units, a year-on-year increase of 6.5%. Benefiting from the rapid development of the gas compressor industry, natural gas compressors, as a segmented product, have continued to expand the industry’s development space.

According to the “2022-2027 China Compressed Natural Gas Industry Market Demand and Investment Planning Analysis Report released by the Industrial Research Center, currently, my country’s compressed natural gas supply technology has matured and is widely used in urban gas supply, automobile fuel and other fields. In the field of urban gas supply, benefiting from the gradual implementation of national environmental protection policies, the scale of natural gas users in my country continues to grow, driving the increasingly strong market demand for compressed natural gas; in the field of automotive fuel, my country’s CNG vehicle sales have increased significantly in recent years, promoting the construction of natural gas filling stations The pace continues to accelerate, and the number of CNG filling stations in my country has exceeded 6,500.0 in 2021. With the rapid development of downstream industries, the scale of my country’s compressed natural gas market will continue to expand.

The major compressed natural gas companies in my country include Jingcheng Mechanical and Electrical Co., Ltd., PetroChina, Sinopec, CNOOC, Hebei China Gas Weiye, etc. At present, my country’s compressed natural gas industry is highly concentrated, with state-owned enterprises occupying the majority of the market share. Industry analysts said that benefiting from the rapid development of downstream industries, my country’s compressed natural gas market demand continues to be released. In the future The industry will gain broad development prospects.