China will ban the construction and expansion of new methanol projects with natural gas as feedstock, according to the latest policy on natural gas utilization.

   The new policy is aimed at saving China's limited natural gas resources, said Chen Weiguo, an official of China Petroleum and Chemical Industry Association.

   According to the policy, China will make an overall planning of its natural gas resources to meet rational local demands with the priority given to urban areas.

   It will maintain the present natural gas supply situation, and follow the contracts to ensure gas supply to existing and approved projects.

   The new policy set a threshold to prevent new comers from rushing into the industry and tries to ease the tension of gas supply.