COUNTRY | China
REGION | Asia
SECTOR | energy, transport
QII Principles | Principle 1 Sustainable Growth & Development, Principle 2 Economic Efficiency, Principle 3 Environmental Considerations, Principle 5 Social Considerations, Principle 6 Infrastructure Governance
QII Sub-Principles | 1: SDGs, 1: Paris Agreement, 1: Wider economic benefits, 2: Value for money analysis, 2: Life-cycle costing, 2: Operation and maintenance, 2: Technological innovation, 2: Risk management, 3: Environmental Impact Assessment, 3: Disclosure of environmental aspects, 3: Ecosystems, 3: Climate, 3: Weather, 3: Emissions, 4: Disaster risk management, 4: Disaster risk insurance, 5: Social Impact Assessment, 5: Job creation, 5: Capacity and institutional building, 5: Gender, 5: Occupational health and safety, 5: Universal access to services, 5: Social inclusiveness, 5: Disability, 5: Low-income groups, 5: Marginalised groups, 6: Growth & development strategies, 6: Procurement transparency, 6: Financial & debt sustainability, 6: Institutional Framework of infrastructure investment, 6: Enabling Environment, 6: Policy
Since the large-scale construction project was started in 1979, the Beijing Natural Gas Utilization System Project’s total investment has exceeded 30 billion RMB. And a sophisticated transmission and distribution system of has been completed, with a pipeline length of 23,800 kilometers, which is the largest gas distribution and management system in Asia has been created. The project forms China's first system to receive both domestic and imported gas, offshore and inland gas, conventional and unconventional gas, with a "multi-gas, multi-source, multi-channel" supply pattern, effectively guaranteeing the security of Beijing's natural gas supply. In 2019, the supply of natural gas has exceeded 18 billion cubic meters. The cumulative supply of natural gas exceeds 150 billion cubic meters, making Beijing the second largest natural gas consuming city in the world after Moscow.
The project serves a wide variety of users, including residential, commercial, heating, refrigeration, industrial, power generation, natural gas vehicles and distributed energy. The project is planned, constructed, operated and maintained in accordance with relevant national regulations and requirements, with strict implementation of open bidding procedures and management norms, and equal treatment for all types of market participants. The project aims to optimize Beijing's energy consumption mix, replace coal consumption, expand the use of clean energy, improve air quality, benefit city residents.
In September 1997, the first nature gas pipe line linking Shaanxi and Beijing began to supply nature gas, and the large-scale construction of gas transmission and distribution system in Beijing began.
In July 2006, the last coal gas production plant in Beijing, the Beijing Coking Plant, was closed down.
In November 2017, the Shaanxi-Beijing natural gas pipeline began to supply nature gas. And natural gas reached all districts of Beijing.
Relevance to QII
Responding practively to the government's call for "blue sky protection" and sustainable development; striving to improve efficiency in all aspects of project planning, construction, operation and maintenance; insisting on combining financial efficiency with environmental protection, social responsibility and governance in both philosophy and action; striving to follow industry best practices and applying industry best available technologies throughout the project process.
The Project has played an important role in helping adjust the city's energy mix and improve air quality. The proportion of natural gas in Beijing's energy mix has increased from 0.4 per cent in 1997 to 34 per cent in 2019, reaching the average level of developed countries; natural gas has cumulatively replaced 240 million tons of coal burning; Beijing's PM2.5 concentration has decreased from 90 micrograms in 2013 to 42 micrograms in 2019; and life expectancy in Beijing has increased by four years.
Natural gas accessibility, affordability, financial performance, security of supply, emission levels and air quality.