The private lending department of the World Bank is focusing on investments in some of the natural gas organizations based in China, which is the fastest growing industry for fuel.
As a result, the International Finance Corporation (IFC) has made a firm decision to make an investment of US$150 million in the gas distribution company of the mainland China: The Tian Lun Gas Company. This decision was taken just two weeks after the previous announcement of the debt-financing deal of US$300 million for the China Gas Holdings Ltd. The shares of Tian Lun Gas went up the most after these announcements.
As per Lance Crist, the global head of oil and gas of IFC’s in Washington, the International Finance Corp. will be investing in either two to three gas distributors in the country in the medium term.
According to the International Energy Agency of Paris, the gas demand in China will be going up more than three times from what it was in the period between the years 2012 and 2040. This rise is because the country is looking for variety to get rid of the coal and lessen down the air pollution. The agency further informed in its World Energy Outlook report 2014 that, gas will be accounting for 11% of the nation’s basic demand for energy in 2040 from the present 4%.
Lance Crist further stated that gas has conventionally been a very small section of the energy equation in the nation, determining around 5% of the energy supply. The government of China is themselves striving to double the figures to around 10% in the next five years and they are also estimating that they would like to witness it to be in between 15% to 20% in the next 25 years.