China Oil and Gas Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Chinese Oil and Gas Market is segmented by Sector (Upstream, Midstream, Downstream).

China Oil & Gas Industry Overview

China Oil and Gas Market Size
Study Period: 2019 - 2028
CAGR: > 2 %

Major Players

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*Disclaimer: Major Players sorted in no particular order

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China Oil & Gas Market Analysis

The Chinese oil and gas market is expected to register a CAGR of more than 5% during the forecast period, 2022-2027. The COVID-19 outbreak in Q1 2020 had an adverse impact on the Chinese oil and gas market in terms of drawdown investments, shortage of import quotas, and further muted Chinese fuel consumption. Factors such as the discovery of new oil and gas fields, rising oil and gas investments, and the growing demand for energy with the rising population are expected to drive the oil and gas market during the forecast period. However, the growing demand for renewable energy is expected to hinder the market’s growth during the forecast period.

  • The midstream segment is expected to witness significant growth in the Chinese oil and gas market during the forecast period.
  • China targets to boost domestic production of unconventional sources like shale gas. It is also estimated that China's shale gas production may reach around 280 billion cubic meters (bcm) by 2035. Thus, the plans to boost its shale gas production are expected to create an opportunity in the coming years.
  • The rising oil and gas investments, especially in the upstream and midstream sectors, are expected to drive the nation’s oil and gas market during the forecast period.

China Oil & Gas Industry Segments

The Chinese oil and gas market report includes:

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China Oil & Gas Market Trends

This section covers the major market trends shaping the China Oil & Gas Market according to our research experts:

Midstream Sector to Witness Significant Growth

  • China's oil and gas midstream consists of oil and gas pipelines and storage facilities. As of 2021, the country has nearly 110,000 kilometers of natural gas pipeline, while the oil pipeline of nearly 27,441 kilometers.
  • In April 2020, China’s Sinopec started building storage tanks in the second phase of its Tianjin terminal project to receive liquefied natural gas (LNG). The plan for the second phase is to have five LNG tanks with a storage capacity of 220,000 cubic meters each and a new berth for LNG vessels.
  • In July 2020, PipeChina agreed to buy pipelines and storage facilities valued at USD 55.9 billion. Under the deal, PipeChina, known formally as China Oil and Gas Pipeline Network, will take over oil and gas pipelines and storage facilities from state-owned energy giants PetroChina and Sinopec in return for cash and equity in the pipeline company.
  • Moreover, China has nearly 287 storage facilities with approximately 1.06 billion barrels of total storage capacity (crude oil: 74 facilities with 706.1 million barrels of capacity; refined products: 213 facilities with 357 million barrels of capacity).
  • In October 2021, China Petroleum & Chemical Corp (Sinopec) commenced operations on a 10 billion cubic meter Wei 11 gas storage facility in Northern China. The Wei 11 gas storage facility built in the Zhongyuan oilfield region has completed its first gas injection. The storage mainly covers the region of the middle and lower reaches of the Yellow River - Henan Province and East China's Shandong Province.
  • PetroChina's domestic crude oil pipelines had a total length of about 7,190 kilometers in 2020, while gas pipelines had a total length of about 22,555 kilometers. Overall, pipeline length decreased in 2020 compared to the previous year.
  • With rising demand for natural gas, the country is planning to build 23 gas storage facilities by 2030, with an investment of around USD 8.5 billion. The completion of the storage facilities, along with the upcoming gas pipelines in the country, is expected to boost the midstream sector in the near future.
  • Therefore, based on the above-mentioned factors, the midstream segment is expected to witness significant growth in the Chinese oil and gas market during the forecast period.
China Oil and Gas Market Trends

Rising Oil and Gas Investments Driving the Market Demand

  • China is the world’s second-largest consumer of oil and gas and the sixth-largest producer of oil and gas globally. The Chinese energy market is dominated by state-owned oil and gas companies by developing the country’s domestic reserves, building and operating pipelines, managing, and filling its strategic petroleum reserves (SPR).
  • China's oil consumption has seen significant growth with rising demand from the increasing automotive fleet across the country. Oil consumption increased to 14,225 thousand barrels per day in 2020, as compared to 14,005 thousand barrels per day in 2019. This is expected to attract major investments to meet the demand.
  • Furthermore, to meet the county's oil and gas demand and boost domestic energy supplies, in 2020, China's Ministry of Natural Resources announced the opening of foreign direct investments in the oil and gas industry. It aims to allow foreign companies to explore for and produce oil and gas in the country.
  • In February 2021, CNOOC announced a total capital expenditure of USD 15.46 billion, with targeted net production of 545-555 million barrels of oil equivalent (Mboe).
  • Further, in March 2021, Sinopec anticipates spending CNY 66.8 billion on upstream exploration, focusing on shale gas development in southwest China and the construction of liquefied natural gas (LNG) terminals in coastal areas.
  • In November 2021, ExxonMobil announced the final investment decision (FID) to build a multi-billion dollar petrochemical complex in south China's Guangdong province. The Dayawan plant will produce performance polymers used in packaging, automotive, agricultural, and consumer products for hygiene and personal care.
  • Hence, making some of the major investments with the help of domestic and foreign firms is expected to drive the Chinese oil and gas market during the forecast period.
China Oil and Gas Market Analysis

China Oil & Gas Market Competitor Analysis

The Chinese oil and gas market is moderately consolidated. The key players in the market include China National Petroleum Corporation, China Petroleum & Chemical Corporation (Sinopec), China National Offshore Oil Corporation (CNOOC), ExxonMobil Corporation, and Chevron Corporation.

China Oil & Gas Market Top Players

  1. China Petroleum & Chemical Corporation (Sinopec)

  2. China National Offshore Oil Corporation (CNOOC)

  3. Exxon Mobil Corporation

  4. China National Petroleum Corporation

  5. Chevron Corporation

*Disclaimer: Major Players sorted in no particular order

 China National Petroleum Corporation, China Petroleum & Chemical Corporation (Sinopec), China National Offshore Oil Corporation (CNOOC), Exxon Mobil Corporation, Chevron Corporation

China Oil & Gas Market Recent Developments

  • In June 2021, China National Petroleum Corporation (CNPC) announced the discovery of a new 1-billion-ton super-deep oil and gas area in the Tarim Basin in Northwest China's Xinjiang Uygur Autonomous Region. The discovered well is located in the Fuman Oilfield area, the main block for crude oil production in the Tarim Oilfield. Its drilling depth reached 8,470 meters, and the height of the test oil column hit 550 meters.
  • In September 2021, CNOOC Limited announced a 'large-sized discovery' on the Kenli 10-2 oilfield in Bohai Bay. The Kenli 10-2 oilfield is located in Laizhou Bay Sag in Southern Bohai Bay, with an average water depth of about 50 feet.
  • In January 2022, Sinopec discovered a new oil and gas area with approximately 100 million tonnes of reserves in the Tarim Basin of northwest China's Xinjiang Uygur Autonomous Region. These latest reserves in Sinopec's Shunbei oil and gas field are estimated to provide 88 million metric ton of condensate oil and 290 billion cubic meters of natural gas.

China Oil & Gas Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Oil and Gas Reserves in the China, till 2020

    3. 4.3 Crude Oil Production and Consumption Forecast in thousand barrels per day, till 2027

    4. 4.4 Natural Gas Production and Consumption Forecast in billion cubic feet per day, till 2027

    5. 4.5 Recent Trends and Developments

    6. 4.6 Government Policies and Regulations

    7. 4.7 Market Dynamics

      1. 4.7.1 Drivers

      2. 4.7.2 Restraints

    8. 4.8 Supply Chain Analysis

    9. 4.9 PESTLE Analysis

  5. 5. MARKET SEGMENTATION - BY SECTOR

    1. 5.1 Upstream

    2. 5.2 Midstream

    3. 5.3 Downstream

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 China National Petroleum Corporation

      2. 6.3.2 China Petroleum & Chemical Corporation (Sinopec)

      3. 6.3.3 China National Offshore Oil Corporation (CNOOC)

      4. 6.3.4 ExxonMobil Corporation

      5. 6.3.5 Chevron Corporation

      6. 6.3.6 BP PLC

      7. 6.3.7 Shell PLC

      8. 6.3.8 Yanchang Petroleum International Limited

      9. 6.3.9 Shaanxi Yanchang Petroleum Group

      10. 6.3.10 Sinochem Corporation

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
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China Oil & Gas Market Research FAQs

The China Oil and Gas Market is studied from 2019 - 2028.

The China Oil and Gas Market is growing at a CAGR of >2% over the next 5 years.

China Petroleum & Chemical Corporation (Sinopec), China National Offshore Oil Corporation (CNOOC), Exxon Mobil Corporation, China National Petroleum Corporation, Chevron Corporation are the major companies operating in China Oil and Gas Market.

China Oil and Gas Industry Reports

In-depth industry statistics and market share insights of the China Oil and Gas sector for 2020, 2021, and 2022. The China Oil and Gas research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the China Oil and Gas report PDF.

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