China currently is the world's biggest carbon emitter, relying on coal for about two-thirds of its energy needs. One of the major steps to improve air quality is expanding its supply of natural gas, which emits far fewer pollutants than burning coal. To that end, the northern city of Tianjin, on Tuesday shut down its last and largest coal-fire power station in its central area. New gas-power plants will step-in to meet the city's power and heating demand.

According to an industrial white paper entitled "China's Age of Gas", released by General Electric Company in 2013, China's natural gas demand will increase at an annual rate of 8 percent, reaching almost 400 billion cubic meters a year by 2025, making the market 2.5 times larger than in 2013.

It also predicted that China's share of gas in the primary energy consumption mixture will reach 8 percent in 2025, which will reduce the country's environmental cost by 5 trillion yuan, or 380 billion yuan each year -- that's roughly 0.5 percent of China's annual GDP.

In terms of production, China's top economic planner, the National Development and Reform Commission, published in 2012 a five-year plan for natural gas development. It said China should be able to produce 176 billion cubic meters of natural gas by 2015.

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