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The Game of “Live and Death”between Coal to Gas with Ceramic Factory

23 Apr.2019      Source:beth

Keywords:coal to gas

In 2019, "coal to gas" has become a hot topic again.

In 2013, the Chinese government first proposed the "coal-to-gas" project, requiring the transformation of coal-fired boilers into gas-fired to reduce air pollution. Since then, the "coal-to-gas" project has entered the ultra-fast lane. In many places, coal-to-gas conversion has been carried out on a large scale, and in some places, enterprises have been forced to change coal to gas roughly.

Since 2016, the process of "coal to gas" in ceramics industry has been accelerated obviously, and every year, the production area declares the completion of "coal to gas". Up to now, large production areas such as Zibo in Shandong, Jinjiang in Fujian, Faku in Liaoning and Jiajiang in Sichuan have comprehensively completed "coal to gas" transformation, and quite a number of other production areas have partially completed "coal to gas" transformation.

Recalling the road of "coal to gas" in ceramic producing areas in recent years, it is difficult to push forward in the repeated and tortuous love-hate entanglement. The game between "coal" and "gas", the game between ceramic enterprises and "gas company" occurs from time to time.

China's natural gas consumption has more than doubled in the past decade, reaching a historic 6.9% in 2017, but still far below the world average of 23.7%. According to the national energy development plan, the proportion of natural gas in primary energy consumption structure in China is expected to reach 10% in 2020 and 15% in 2030.

Thus, the coverage of natural gas in China will be further expanded, and the "coal to gas" in ceramic industry will continue to be increased. Many ceramic enterprises with low added value, low profit margin and low management efficiency will face greater pressure. The earlier completion of the "coal to gas" production area will usher in a fairer competitive environment.

Faku, Liaoning Province - Ceramic Industry Park has launched the largest environmental protection transformation project since its establishment - "coal to gas" project. As of May 2018, more than 40 enterprises and 200 supporting enterprises in Faku Ceramic Park have achieved full coverage of clean energy in the production process. Compared with the ceramic tile production area without coal to gas conversion, the cost increases by 0.4 Yuan.

Zibo - 2016, all ceramic enterprises under the jurisdiction of the municipal government actively responded to the call, the application of water gas production to the application of natural gas production, to become the early domestic production area of all the construction ceramics converted to natural gas production. It can be said that Zibo ceramics enterprises have entered the development stage of cleaner production, but also entered the fuel cost is much higher than the surrounding production areas. Coal is 50% cheaper than natural gas in Zibo.

Moreover, due to the insufficient supply of natural gas in China, especially during the heating season in northern China, whether the supply of natural gas is sufficient or not has become a concern of all gas users. For the construction ceramics industry, the lack of natural gas supply will cause inestimable losses to the normal production and sales of ceramics enterprises.

Jinjiang, Fujian Province, is a ceramics producing area of "coal-to-gas" which was earlier implemented in China. According to the implementation schedule, the road of "coal-to-gas" began as early as 2009 in Jinjiang; it was formally implemented at the end of 2010, requiring pottery enterprises under their jurisdiction to phase out gas producers in batches within three years to realize natural gas substitution; by the end of 2013, all "coal-to-gas" will be realized, with a good time span from 2014 to 2019. It's 5 years. In the tide of "coal to gas" many ceramic enterprises in Jinjiang production area collapsed, but under the pressure of cost brought by "coal to gas", Jinjiang ceramics production capacity concentration is higher.

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