Energy Transition: China lacks storage space for natural gas

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China is making a transition from coal to natural gas as a major energy source, but the supply of gas is not keeping up with soaring demand. It's now developing underground storage facilities to deal with consumption peaks. Tao Yuan reports.

It's time to clean up these pipelines. Burning up the gas left over from the winter heating season to make room for a new supply. This used to be a gas field. But resources dried up and it was turned into a storage facility for imported gas. When Jiang Huaquan started here 25 years ago, gas storage was non-existent in China.

JIANG HUAQUAN, VICE MANAGER XIANGGUOSI GAS STORAGE MANAGEMENT OFFICE "In the past, nearby factories would be ordered to stop operations in winter to ensure people had enough gas for heating. It was the only way because we just weren't producing enough gas."

It works as a bank for gas. Storing it in the summer when consumption is low, releasing it later to deal with surging demand in the winter. And the demand is high, as the world's biggest energy user kicks its coal habit to cut pollution.

TAO YUAN CHONGQING "China's coal addiction is responsible for polluting the air, soil and water. Now it wants to switch from coal to gas to power a greener future. The benefit is obvious. But the sudden rise of gas demand also means immense pressure on oil companies to build storage facilities."

China still only has storage capacity for 3.3% of its demand. The world's average is 11.7%. Beijing wants to double its storage capacity by 2020, hoping to avoid gas shortages it experienced this past winter. A shortage so bad, that some regions were even ordered to restart their coal-fired plants. Workers here felt the pressure.

YIN HAO WORKER, XIANGGUOSI GAS STORAGE "It was a very busy winter. We stayed on site for days on end without going home to make sure everything is safe. Everyone sacrificed a lot for our duty to keep people warm."

Smoothing out an energy shakeup. The lingering smog is a reminder of why the conversion is so necessary. Tao Yuan, CGTN, Chongqing.