China's gas power industry presents both big troubles and great opportunities to the investors. As power generation fuel, the price of some gas sources (such as import LNG) is higher than the electricity price that China's power grid companies pay to the power plants. Local government subsidy has for long been the only method to keep these power plants running. As both China's economy start to go bankrupt in the upcoming unprecedented crisis, the local governments might not be able to afford the subsidy any more.
On the other side of the coin, total installed capacity of gas power will keep growing. The growth will be based on formation of China's national gas pipeline grid and the call for cleaner energy. According to the statistics from China Natural Gas Map, Databases and Reports by 2017.5, there are 315 conventional natural gas power plants and 50MW+ distributed energy stations (existing, constructing and planning) in this nation. As China is speeding up the growth of its CBM production capacity, at least 5 CBM power plants (total installed capacity to be 2,504MW) will be put into operation by 2018. Besides, over 239 small-sized CBM power stations will also be in service then. View Gas Power Statistics>