Jintan gas storage in Hong Kong and China safeguards energy supply and creates industry precedent.

Natural gas is a kind of green, efficient and clean energy, which can complement other low-emission energy sources, such as renewable energy, and is the most realistic choice for clean energy supply. With the sustained recovery of the real economy and the rapid growth of natural gas consumption in recent years, natural gas plays an increasingly important role in the process of world energy diversification.

Since 2016, China's natural gas demand has erupted due to the downward trend of superimposed gate station price driven by the policy. The demand growth rate is as high as 12%, and the trend is expanding. In 2017, China's natural gas output was 147.4 billion cubic meters, an increase of 7.70 percent over the same period of last year; natural gas import was 955.547 billion cubic meters, an increase of 26.99 percent over the same period of last year; external dependence was 38.43 percent; and natural gas consumption was 239.394 billion cubic meters, an increase of 14.71 percent over the same period of last year.

In the first half of this year, China's natural gas output was 77.9 billion cubic meters, up 4.9 percent from a year earlier; its import of natural gas was 58.4 billion cubic meters, up 39.3 percent from a year earlier; and its apparent consumption of natural gas was 134.8 billion cubic meters, up 17.5 percent from a year earlier. It is estimated that by 2020, the total population of gasification will reach 470 million, and the national demand for new urban gas will reach 23.3 billion cubic meters, with an average annual growth rate of 10.5%. At the same time, the proportion of natural gas consumption in primary energy consumption will rise to 10%, the total consumption of natural gas will reach 360 billion cubic meters, and the compound growth rate of natural gas consumption in China will be close to 15% in 2016-2020.
With the sustained recovery of China's economy, the transformation of energy consumption to low-carbon, the sustained growth of natural gas consumption demand, accelerating the construction of gas storage, improving the peak shaving and emergency response capacity of natural gas has been put on the agenda, is the necessary guarantee to accelerate the development of natural gas industry. In order to ensure the stable and safe supply of urban gas and promote the green development of social economy, as one of the largest urban gas groups in the Mainland, Hong Kong Huaqi Group has foresight insight into the development of the industry, strategic layout of underground gas storage and other peak-shaving facilities construction, creating a pioneer in urban gas industry.

Hongkong Huajintan Gas Storage Co., Ltd. is the first large-scale underground salt cavern gas storage project in China and the key supporting facilities for the West-East Gas Pipeline Project. With the close attention of the governments at all levels in Jiangsu Province, Changzhou City and Jintan District and the strong support of the cooperative units such as PetroChina, Jintan Salt Chemical Company and Beijing Oil and Gas Control Center, the three wells of the first phase of the Jintan Gas Storage in Hong Kong and China were successfully completed and ventilated for trial operation in the first half of this year, and will be put into production formally by the end of October. The storage capacity is nearly 150 million cubic meters, and its working volume is about 88 million cubic meters.

Hong Kong Huajintan Gas Storage Phase I has a total of 10 wells, which are expected to be completed by 2022. The total gas storage capacity of the reservoir is about 460 million cubic meters, of which the effective working gas capacity is about 260 million cubic meters, and the maximum gas supply capacity is 5 million cubic meters per day. In March 2018, the two sides reached a strategic consensus and continued to expand cooperation. On the basis of the original 10 wells, another 10-12 wells will be added. The total reserves of the gas storage will be estimated to be 1 billion cubic meters and the working gas will be nearly 600 million cubic meters. This will speed up the construction and upgrading of gas storage facilities in the urban gas industry. The peak load regulation capability has made important contributions.

East China is one of the most economically developed regions in China. With the increasing demand for clean energy and natural gas in the market, the problem of peak shaving has become increasingly prominent. With the commissioning and operation of the first phase of Hong Kong Huajintan Gas Storage, the peak shaving and gas storage capacity of Hong Kong Huajintan Gas Group will be greatly enhanced. The increasingly tense emergency peak shaving demand in East China will be greatly alleviated through the interconnection of high-pressure pipelines of urban gas enterprises, so as to ensure the stable supply of natural gas and promote the development of regional social economy. The exhibition plays an important role.