China, the world's second biggest energy user, is promoting the use of natural gas to improve the air quality and people's living conditions. But surging demand for natural gas in Asia calls for better cooperation and integration of ASEAN members and China, South Korea and Japan.

The surging demand for natural gas in Asia calls for better cooperation and integration of ASEAN members and China, South Korea and Japan, officials attending the First ASEAN+3 Natural Gas Forum said Monday.

"We have big producers as well as big consumers in this region. Both sides should enhance the prosperity of the natural gas business in the region," said an official from Indonesia.

China, the world's second biggest energy user, is promoting the use of natural gas to improve the air quality and people's living conditions. The country is eager to enhance cooperation with neighboring ASEAN countries, said Xu Dingming, director-general of the Energy Bureau, a division of the State Development and Reform Commission of China (SDRC).

With reserves of 3.5 trillion cubic meters, or 2.3 percent of the world's total, China is engaged in a handful of giant pipeline projects.

It is also exploring another estimated 54 trillion cubic meters in natural deposits.

According to Wang Jing, also with the Energy Bureau, a total of 142.4 billion yuan (US$17.3 billion) will be invested in the East China Sea to build 10 natural gas platforms.

Meanwhile, she added, China also needs to import both liquefied natural gas (LNG) and pipeline gas and compete in the global market.

Zhang Xin, director-general of the China National Petroleum Corporation (CNPC), the parent company of PetroChina, served as chair of the forum. "Such a forum provides a good platform for us to learn about other ASEAN members, laying the groundwork for future cooperation," he said.

Guillermo Balce, executive director of the ASEAN Center For Energy, said that China, and especially its coastal area, is a strategic demand center for natural gas producing countries in ASEAN, including Indonesia and Malaysia.

As these countries are physically close to China, he believes they will be a good natural gas resource for China in terms of expense and security.

"ASEAN countries are happy about China's progress," he said. "China is moving in the right direction by taking a substantial role in developing natural gas in the region."

In addition to long-term supply contracts, he said ASEAN+3 countries should also share technology to improve the efficiency of natural gas utilization.

CNPC, China's largest oil company, has invested in Indonesia, Thailand and Myanmar to prospect for and develop natural gas and oil.

"Our policy is to diversify our sources of natural gas. We are looking at ASEAN, as well the Middle East and Russia," he added.

The China National Offshore Oil Corp. (CNOOC), the third-largest oil and gas company, is building the country's first two LNG projects in Guangdong and Fujian provinces, using LNG imported from Australia and Indonesia.

Shanghai, Zhejiang and Shandong provinces are also planning their own LNG projects.

(China Daily March 30, 2004)