Natural gas stations in China grew by 25% in 2014

The number of natural gas stations operating in China grew by 24.7% during 2014, totalling 6,955 stations with LPG or CNG services, a new report reveals.

Although the market is growing, the pace at which new natural gas stations were built slowed down during 2014. According a report by Reportbuyer, 1,379 new natural gas stations were built last year, which is 21.2% less than 2013.

Of the 1,379 new stations, LNG stations fell by 36.5% compared with the previous year, while CNG stations were up 0.7% from a year ago. Researchers believe the fall in growth for LNG stations was mainly due to the collapse of international oil prices, which lowered gasoline and diesel prices, therefore making it less appealing for drivers to switch over.

The CNG station equipment industry has experienced further regional and market concentration, with the top 3 enterprises operating CNG compressors for natural gas stations accounting for a combined 64% market share, which is totally concentrated in Zigong city, Sichuan Province. Only three companies, also from Zigong, have 74% shares of CNG gas storage facility market.

As the number of newly-built LNG stations dived in 2014, China's LNG station equipment industry was also severely affected, but researchers from Reportbuyer project that during 2015-2018 China's investment in LNG stations will rebound.