On November 3, 2015, the "Proposal of the CPC Central Committee on Formulating the Thirteenth Five-Year Plan for National Economic and Social Development" was formally announced. The "Thirteenth Five-Year Plan " proposed to reduce the government's intervention in price formation and put it in full swing. The prices of goods and services in competitive sectors include price of competitive links in the fields of oil and natural gas. Prior to this, the "Overall Plan for the reform of the oil and natural gas system" led by the National Development and Reform Commission and the Energy Bureau has already been drafted, and it is expected to be officially unveiled at the end of the year. Industry experts pointed out that realizing market-oriented pricing of natural gas will be the focus of this round of oil and gas price reform. This is undoubtedly a major positive for the gas engine market, which has been declining.

Oil and gas reform is undoubtedly a major advantage for the gas engine market, which has been sluggish

Since the beginning of this year, the sales volume of China's gas engine market has continued to decline. The sales of gas engines have fallen more than 40% in the first three quarters. "This year's sales of natural gas engines have fallen sharply. Excluding declining market demand, the main reason is that fuel prices have been adjusting downwards, making natural gas prices have no advantage." The planner of Xichai's marketing department told the reporter.

Now, a series of policies to be issued by the country will allow natural gas price fluctuations to better reflect the real market demand. This undoubtedly brings good news to gas turbine manufacturing companies.

â– In advance layout of the gas engine market

The pace of oil and gas reforms is getting closer and closer. Many diesel engine manufacturers are facing difficulties this year and are introducing more mature technologies to bring more competitive natural gas engines to market. “At present, our company has a large number of gas engines, all of which meet the requirements of the fifth phase of emission limits.” Wang Hongliang, general manager of Yunnei Power Marketing, told reporters, “These models have the ability to meet the requirements of higher emission standards. This year 8 In July, the company also independently developed a 2.4-liter gasoline and natural gas dual-fuel high-quality engine G24. Both fuel and gas models fully meet the national five emission standards and are expected to achieve mass production in the first half of 2016."

In addition to Yunnei Power, at the 14th China International Combustion Engine and Components Exhibition held on November 2nd, many engine companies also brought natural gas engines, such as Yuchai’s two light natural gas engines. Huang Yi, deputy general manager of Yuchai Machinery Sales Co., Ltd., introduced that the two models of Yuchai's light gas engines are 6 to 8.5 meters of roads, buses, city logistics vehicles, and sanitation vehicles.

Huang Yi said that although the gas engine market has experienced a serious decline this year, the demand for the long-distance passenger transportation market has gradually narrowed, but the demand for short-distance transportation has increased significantly, especially for short-haul transportation demand within 200 kilometers. The growth is very obvious. In the market segment, The bus demand of about 6 meters has grown significantly. After a careful study of this market segment, Yuchai launched the corresponding gas engines in a timely manner to expand its market share. In addition, buses that pay more attention to environmental protection and emissions have been the major customers of natural gas engines, and municipal environmental protection vehicles have become a must for engine companies. “Gas engines have certain advantages in environmental protection and economy. The parent company of Jianghuai Navistar has sufficient gas engine technology reserves, and will combine gas turbine engine products with timely market research and customer demand.” Navistar Sales With the customer service department director Wang Dongfang said. The reporter also learned that Xichai has also launched the Hengwei 6SF Five Series natural gas engine in a timely manner, which can support 8.9 to 11 meters of roads, tourism and city buses.

â–  Cost advantage of gas engines after oil and gas reform will be highlighted

"After the oil and gas reform, if there is an advantage in the spread between natural gas and diesel, the market demand for natural gas engines will increase significantly," said Tan Xuefeng, deputy manager of the vehicle and vehicle development department at Yuchai Sales.

Huang Yi also said that due to the continuous reduction of oil prices, although natural gas engines are not dominant in the market in the short term, the development trend of natural gas passenger vehicles is still good in the long run. "After natural gas market pricing, the market prospect of gas engines will be relatively good, because gas engines are part of clean energy. The country's emphasis on environmental protection and strict requirements on emissions will also promote the promotion of natural gas engines," said Wang Hongliang.

Zhu Guoan, director of the marketing center of Jiangxi Isuzu Engine Co., Ltd. believes that after oil and gas prices are marketed, the future market growth will be relatively fast in natural gas-rich areas such as the northwest and southwest of China. These areas are more convenient and cheaper to add gas, and natural gas is also a clean energy source. The effect on environmental protection is good and sales volume may be relatively large.

At the same time, people in the industry believe that the advantages of diesel engines and natural gas engines are different. Diesel engines have better stability, lower maintenance costs, and relatively good economic performance. Especially for truck users, the cost is one of the most considered factors at the time of purchase, so the market for diesel engines will still be large. At the same time, the natural gas engine has a great advantage in environmental protection. There is no problem of particulate emissions after combustion of natural gas. Even if the gas engine progresses further, there will be some particulate emissions. The main pollution in China is particulate emissions. With the increasingly strict regulations, the promotion and application of gas engines will be increased.

Due to its optimistic view on the future gas engine market, Wang Hongliang stated that Yunnei Power will combine the current marketable product performance and market availability, increase the promotion of existing gas turbine products, and increase the market share of products; meanwhile, increase the number of gas engines. R&D, to fill the gap of competing products or to expand product spectrum and power range; also to develop synchronously with supporting complete vehicle merchants to accelerate the progress of gas engine supporting and to seize the market as soon as possible; to implement technological transformation of production to increase the production capacity of gas engines to meet the market demand .

â–  Still rely on policy support

On November 18, the National Development and Reform Commission decided to reduce the price of non-residential natural gas stations from November 20, 2015, and cut the rate by 0.7 yuan/cubic meter. This time, the reduction is the result of the merger of incremental gas following April 1 during the year. Second down. The natural gas price will be lowered. According to the portal station price, which will be reduced by 0.7 yuan per cubic meter, and the government-administered non-residential gas consumption will be more than 60 billion cubic meters, the downstream industry, power generation, central heating, taxis, and business will be directly reduced every year. Enterprises in the gas industry, such as the service industry, have to bear more than 43 billion yuan.

In the end, how big is the gas engine market in the future? Some people in the industry have said that they have to look at the strength of specific reforms and the direction of policy guidance. If gas engines form an industry, they still have to rely on the country's macro-control.

Tan Xuefeng, deputy manager of the vehicle development department of Yuchai Sales Co., told reporters that this year's sales decline in the gas engine industry is not only due to the price difference between oil and gas, but there are also some factors that many passenger cars have begun to use pure electric power.

Zhu Guoan told reporters that gas engines are mainly used in passenger cars, buses, and urban tractors. Natural gas, as a clean energy source, has not been included in the national encouragement program, leading to a price that does not dominate over gasoline engines. Pure electric subsidy, so the rapid growth of market share.

China's natural gas reserves are abundant, and the demand for natural gas is also growing rapidly. The construction of gas filling stations is also more mature and the aeration is more convenient. With the promotion of price reform and environmental protection policies, the impact of the two major policies on the natural gas market has become increasingly evident. With the continuous deepening of oil and gas reforms, the advantages of oil-gas price differentials will become more apparent. “Furthermore, in the case of sufficient air supply, from the perspective of environmental protection, municipal vehicles in future cities may shift to purchasing natural gas power when purchasing, and the natural gas market will gradually expand in the future. However, long-distance logistics and urban logistics aim at pure profitability. Will certainly be affected by the price is relatively large, so the future still depends on the national regulation and control." Tan Xuefeng said.

According to industry insiders, when the price ratio of diesel to natural gas is around 1:1.3, the advantages of natural gas engines will be more apparent. Moreover, China’s engine companies have achieved very good results in terms of the stability and economy of gas engines through the introduction of foreign advanced technologies and independent research and development. The cost is also being diluted. If relevant subsidy policies are issued and the cost of acquisition is reduced, the future market growth will be just around the corner.

Compared with large-scale diesel engines, gas engines are still new and will need policy support in the future.

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