China Synthetic Natural Gas Industry Development Research

China is now in a quick developing phase; as a result, consumption of natural gas will be increase continuingly.Domestic natural gas production is not sufficient to satisfy the increasing potential consumption which will consequently depend on natural gas import to a certain extent. However, plentiful coal resources in China lay a material and energy foundation on the development of Coal Based Synthetic Natural Gas ("SNG"). As a substitute of natural gas, SNG can be used to reduce foreign dependence and ensure energy security.SNG industry is a kind of integration type, in terms of resource, capital and technology. The industry is an emerging industry and is now still in demonstration period. Recently, a lot of SNG projects are invested and built in many parts of China, in consideration of potential supply shortage and higher price of natural gas. Therefore, SNG industry is now in a disorder and over-heated condition. This research analyzes internal and external environment of SNG industry; current situation and prospect of domestic and foreign natural gas industry; status of SNG technology, cost, policies and transportation; financial feasibility of SNG projects; and points out some risks of SNG projects. It can be concluded from the research that SNG is a clean way of coal utilization and an alternative of ordinary natural gas; however, SNG projects should be developed in control and selectively. At last, this paper gives the advices on how to develop SNG industry in a healthy way.