Gas industry players in China are skeptical that government efforts to boost gas use to help combat pollution will succeed Beijing sees the main growth areas as coal-to-gas switching by industry and power generators, and using more gas in land and sea transport. But sources say gas will have a hard time making headway. This is largely on cost grounds: Gas is still too expensive versus coal and oil. But it's also because of the potential social impact. Over 1.3 million coal miners have already lost their jobs as mines have closed in a government bid to combat pollution and overcapacity, and further closures would lead to more layoffs (WGI May11' 16). "No government officials would like to be responsible," an analyst at state China National Petroleum Corp. (CNPC) tells WGI. "Compared to social unrest, it doesn't matter if gas consumption can't be increased."
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