Henan Province to Promote New Heating Mode

Henan Province to Promote New Heating Mode

On August 28, 2019, Henan Provincial Development and Reform Commission issued Implementation Plan for Accelerating “Double Replacements” Heating in Henan Province, striving to complete 2 million “double replacements” heating before the heating season in 2019.

Before the heating season in 2019, the northern part of Henan Province (excluding Nanyang City, Dengzhou City, Xinyang City and Gushi County) strives to complete 2 million “double replacements” heating, among which “electricity coal replacement” heating 1.8 million households and “gas coal replacement” heating 0.2 million households. In the rural areas (including Nanyang City and Xinyang City), where are not covered by the “double replacements” heating plan and excluded from the “coal (including clean coal) forbidden area”, they will use clean coal or other clean heating modes as temporary transition heating measures.

Due to the requirements of air pollution prevention and environmental quality improvement, natural gas has been widely used as a kind of clean fuel in China. Accordingly, the impact of the gradual popularization of natural gas on civil-use LPG market is huge. Furthermore, there were many areas with no natural gas supply in response to various restrictions, such as geographical location, infrastructure, pipeline installation, etc. Accordingly, the popularization of natural gas is not a one-off. Besides, Henan Province has a special geographical location. On the one hand, it has convenient transportation conditions and early started the implementation of natural gas. On the other hand, it is urgent for Hebi, Anyang, Jiaozuo, Xinxiang, Zhengzhou, Kaifeng and other cities to improve the air quality. Therefore, the replacement of loose coal, straw and other fuels by clean fuels, such as natural gas, is imperative for Henan Province, especially during the heating season.

However, SCI reckons that the impacts of “double replacements” on the local civil-use LPG market will be limited.

On the one hand, natural gas will replace civil-use LPG in heating and cooking, but most residents will use LPG to cook when they use electricity for heating. On the other hand, the overall demand for LPG in Henan has shrunk gradually due to the natural gas promotion. Besides, there are few residents using LPG, natural gas or electricity to cook in the rural remote areas. On the whole, the impacts of “double replacements” on the civil-use LPG market in Henan will be limited.






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