China plans $16b in oil-and-gas investment
CHINA will invest 80 billion yuan (S$16.6 billion) in oil-and-gas exploration this year, state media said yesterday, as it tries to boost energy supplies and reduce its dependence on energy imports.
Oil-and-gas investment in China has risen from 19 billion yuan in 2002 to 67.3 billion yuan in 2011, the official Xinhua news agency said, citing Ministry of Land and Resources figures.
More than 5 billion tonnes of petroleum reserves and 2.6 trillion cu m of natural gas were discovered between 2008 and 2011, Xinhua said.
China, the world's biggest energy-consuming country, has promised to cut its growing dependence on overseas oil and gas supplies.
However, some analysts still expect China to overtake the United States as the world's biggest crude-oil importer as soon as 2017. Much of the oil comes from the Middle East and Africa, and is transported via vulnerable sea lanes.
Gas imports are important to China because domestic production is not sufficient to meet growing demand. Imported gas is delivered via pipeline from Central Asia and by ship from countries such as Australia, Indonesia and Qatar.
China bought 42.5 billion cu m of gas from overseas last year. That was up more than 30 per cent compared with 2011, and a nearly 10-fold increase from 2007.