China's natural gas resources are mainly distributed in central and western areas of the country and remain a relatively scarce energy source. Proven reserves of natural gas stood at 3.1 trillion cubic meters in China at the end of 2012. That's only 1.7 percent of the world's total.

As for the remaining recoverable reserves of natural gas, the per capita data for China stands at 2,400 cubic meters, while the world's average is more than 28,000 cubic meters.

The uneven distribution of natural gas has hindered its consumption in China. Gas resources are distributed primarily in the west while market demand is mainly in the east coastal area. Transmission costs are high as a result.