China Services UNPARALLELED INSIGHTS INTO CHINA’S ENERGY FUTURE

IHS ENERGY

IHS Energy China Services

China is the world’s largest and fastest-growing energy market. As demand for oil, gas, power, and coal continues to surge ahead, so do opportunities for companies along the entire energy value chain.

As players—both domestic and Our China experts and analysts have international—proliferate in an been locally based in Beijing since the increasingly dynamic marketplace and 1990s, witnessing and, indeed, being reforms create further space for non- deeply involved in the phenomenal state players, the Chinese energy market growth of the Chinese energy sector. Our is also becoming highly complex and China energy research is fully embedded difficult to decipher. in IHS Energy’s extensive network of global expertise and databases, with Differences among the 31 Chinese over 600 energy researchers based in provinces—many of which are the more than 15 locations around the world. same size as a European country or a The research also benefits from IHS large US state—are more pronounced world-leading capabilities in economics, today than ever. The sheer size of China chemicals, automotive, and supply chain also means that events in a particular research, all of which have China-based province can often have important global teams providing research and analysis. repercussions, in ways that were hard to imagine just a few years ago.

IHS Energy China Services provide IHS Energy China Services comprise critical insight for companies investing in two modules, underpinned by China and for those who must anticipate integrated cross-fuel fundamentals IHS China China’s impact on energy markets around and competition analysis. the globe. Together, these services Oil & Gas bring unparalleled expertise providing integrated analysis covering gas, power, coal, and oil, coupled with regulatory and competitive insight. IHS China Gas, Power & Coal IHS China Oil & Gas Service

China has now overtaken the United States to become the world’s largest net oil importer. Consumption patterns are changing, with consumer-driven growth in gasoline outpacing investment-driven growth in diesel, radically changing the landscape for refiners. China also sits on one of the world’s largest resources of shale gas—if even a small proportion of this enormous potential is realized, the market can be transformed. Other gas supply sources are also entering the market and competing for market share.

The IHS China Oil and Gas Service Natural gas market (overview): provides comprehensive, integrated overview of national demand outlooks, insights into key trends driving oil and citygate gas price outlooks, data tables natural gas markets in China, covering and quarterly market briefings, and fundamentals, company strategy, strategic reports

regulation, and policy. National Oil Company analysis: Deliverables Oil market analysis: detailed profiles of each NOC updated monthly briefings, quarterly briefings and annually including; strategic analysis and; outlooks, data tables, product price data LNG procurement insights tables, and strategic reports; Provincial-level analysis: Oil infrastructure: detailed reports on Provincial oil and gas insight; profiles Chinese oil infrastructure (bi-annual) covering regional oil and gas sectors

Natural gas upstream: Supply and cost Semi-annual China Services Workshops: outlooks (by source: key producing basins half-day event conducted in a “roundtable” of conventional and unconventional gas, format, limited to 50 participants to coal-to-gas, import sources) maximize on discussions and exchanges

GIP by geological age for shale gas plays Shale gas GIP by regionfor shale in China (trillion cubic feet) gas plays in China (trillion cubic feet)

Permo–Carb Ordos–Qinshui Songliao Carboniferous 630 900 663 1,202 Mesozoic Junggar Permian 987 314 2,671 Bohai 2,843 Silurian Tertiary 1,636 1,299 Tarim Other 6,336 Cambrian Sichuan Ordovician 3,175 5,413 18% 4,871 Yanchang 3% Sinopec Songliao ChemChina 4% Junggar 42%

Turpan Erlian CNOOC 5%

Qaidam Ordos Bohai

Tarim CNPC Qinshui Hefei 28%

Sichuan

Qiannan Depression China unconventional gas resources China’s oil refining capacity share by company, 2013

Key questions investigated: • What are the key factors driving China’s oil demand?

• What are China’s gas supply sources for the future?

• How far and how quickly will the oil and gas market liberalization progress?

• How will the global gas market influence China’s gas imports? Who will benefit from the service? Integrated oil and gas companies – Key insight in oil and gas upstream and refined product markets, integrated with national oil company insights and policy analysis

E&P companies – Understanding the evolving political landscape, the strategies of NOCs and other key players, evolution in pricing mechanism, as well as midstream and downstream dynamics

Energy equipment and services – Upstream E&P and downstream refining sector analysis and market sizing for oil and gas equipment and services and insights on key players

Automotive companies – Key factors impacting gasoline and diesel demand, including policy changes, regulatory issues, and critical questions facing fuel suppliers. Considering future automotive energy sources and how they will interact with conventional fuels

Financial institutions – Short- and long-term market analysis and policy impact assessment on specific companies IHS China Gas, Power & Coal Service

The Chinese electricity market is already the largest in the world and is expected to double in size again by 2030. In natural gas, China is now the 3rd largest LNG buyer in the world, even though the fuel still represents only 5% of primary energy— enormous growth potential remains. Over half of the world’s coal is consumed in China, but growth has been slowing as policymakers seek to diversify primary energy supply and tackle pollution challenges.

The IHS China Gas, Power & Coal Natural gas: data tables; quarterly Service provides a comprehensive, market briefings; outlooks for provincial integrated insight into key trends demand by sector and regional supply driving the evolution of China’s natural by source; long-term citygate price gas, power, and coal markets, covering outlooks; long-term industrial retail price fundamentals, company strategy, outlooks; and strategic reports regulation, and policy. Coal: supply and demand data tables, Deliverables Electric power: Data tables; quarterly quarterly market briefings, price market briefings; wholesale and retail data tables, supply cost database price data; outlooks for provincial (by production unit), price outlooks demand by sector, supply by technology, (Qinhuangdao and Guangzhou delivered), and system reserve margins; regional and strategic reports cost of generation; transmission Company analysis: gas and power utility infrastructure outlook; retail tariff profiles updated annually; strategic outlooks (wholesale and retail for select analysis; LNG procurement insights; provinces); and strategic reports company profiles include large power generators, e.g, Huadian Group and Guodian Group, as well as gas utilities,

Xinjiang and Northwest: Coal Country: Coal and renewables coal and gas e.g., ENN Group and Beijing Gas. and renewables • 40% of potential coal resources • 47% of potential coal • 60% of current coal production resources • Inner Mongolia has largest onshore • Over one-third of shale wind resources (25–60% national) gas-in-place resources Policy and geopolitics: carbon policy • 25% of onshore wind Shanxi resources Ningxia • Solar resources about 40% higher than on Xinjiang coast, among highest Xinjiang and carbon price outlooks; politics, in China Inner Mongolia

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a policy, and regulatory strategic reports

S Jiangsu Gangsu Henan Southwest hydro O shore wind Shaanxi Sichuan Hubei • 300+ GW of potential hydro resources, with Tibet Sichuan only one quarter Provincial-level analysis: Provincial-level developed Zhejiang Coastal: Important long-distance transmission • One-third of shale lines in China: Operating and gas-in-place resources Demand center Yunnan under construction in Sichuan Basin Yunnan long-term outlooks for gas and power; • 50+% of power Xiangjiaba-Shanghai demand • Imports 17% of Jindongnan-Jingmen Guangdong power from inland Jinping-Sunan Nuozhadu-Guangdong provincial gas, power, and coal insights; Largest wind Largest solar provinces 1,000 kV AC Hydro Pu'er (Yunnan)–Jiangmen Xiluodu–Western Zhejiang resources resources • Imports 77% Operating 800 kV DC of coal Ningdong-Shandong North Zhejiang–Fuzhou 31142-13 Under 500/660 kV DC Notes: Coastal includes Liaoning, Hebei, Beijing, Tianjin, Shandong, Jiangsu, Shanghai, Zhejiang, Fujian, Guangdong, South Hami–Zhengzhou Huainan-Shanghai construction 750 kV AC and provincial profiles (gas/power/coal) and Hainan. Power demand and installed capacity data from 2012, coal production from 2011, and hydro and coal resource ﬁgures released in 2005 and 2010, respectively. 31142-14 Sources: IHS CERA, China electricity council, NBS, NDRC © 2013 IHS Sources: IHS CERA © 2013 IHS Semi-annual China Services Workshops: China’s resource imbalance Current state of power half-day event conducted in a “roundtable” is creating challenges for transmisson format, limited to 50 participants to power supply maximize discussions and exchanges Key questions investigated: • What are the fuel choices in China’s future power system?

• How will China’s natural gas midstream infrastructure develop to meet future demand?

• How will gas and power price reforms progress?

• How will resource imbalance and cost differential shape future power supply? Who will benefit from the service? Integrated oil and gas companies – Key insight in gas market fundamentals with a focus on regional and provincial gas demand drivers, policy trends, and utility insights

Energy equipment and services – Market sizing for key equipment and services in power, gas midstream and coal; utility insights to help identify key customers

Mining companies – Coal market analysis and outlooks and the role of coal in the overall energy mix and impacts on the global market

Large energy consumers – Understanding pricing trends and reforms to formulate energy procurement strategies

Power developers – Power market fundamentals and analysis: demand analysis, fuel mix, cost and tariff regulations, policy drivers and transmissions trends

Financial institutions – Short-and long-term market analysis and policy impact assessment on specific companies Access to IHS Energy China Services members IHS Connect, our innovative business Experts and may access our lead researchers and and market intelligence platform. Member Events global network of experts directly by Available on desktop, laptop, and iPad, e-mail, phone or in person to address IHS Connect is a new way to access your inquiries. Members are also invited IHS research & analysis anytime - in the to participate in our semi-annual office or on the go - and connect with China Services Workshops, as well as relevant experts. interactive webinars and other member events including the IHS Forum held IHS Connect empowers you to search several times a year around the world, IHS insight from across IHS tapping where IHS experts present findings, lead into our analysis on energy, chemical, discussions, and respond to questions. and economics markets, as well as Webinars are recorded and remain online customize your experience to address available for later reference. your business needs. IHS Connect uses advanced navigation, sophisticated content tagging and notifications, and interactive data visualization to optimize the ways you can access, query, visualize, and analyze research and data from energy and related industry sectors..

Contact your Account Manager for more About IHS ENERGY information or any of the following: IHS Energy, a part of IHS (NYSE: IHS), is the Asia Pacific: industry’s authoritative provider of informa- Tel: +65 6439 6000 tion, analytics, and insight to help clients to Email: [email protected] understand the interconnected, dynamic forces that shape energy markets and asset Europe, Middle East, and Africa performance. Our experts and analytical tools Tel: +44 (0) 1344 328 300 enable clients to continuously improve their Email: [email protected] strategy and operations across the entire energy value chain, covering oil & gas, coal, Americas: power, and renewables Tel: +1 800 447 2273 Email: [email protected]

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