Natural gas in China
[2] In 2022, China significantly increased its natural gas imports from Russia, with a 54% rise to 16 billion cubic meters, largely through the Power of Siberia pipeline.
[10] To lessen dependence on LNG, China has built pipelines to import natural gas from Myanmar and Central Asia.
As the world's third-largest gas market, China experienced a slight 1.2% decrease in consumption to 364.6 billion cubic meters.
High temperatures are expected to increase natural gas-fired power generation, maintaining China's position as the world's largest LNG importer.
However, concerns exist about rising international spot LNG prices, which need to be below $10 per million British thermal unit to attract Chinese imports.
China's gas consumption is projected to reach 425 billion cubic meters in 2024, potentially pushing LNG imports above 80 million tons.
[13] In its goal to achieve net-zero carbon emissions, China is increasingly using natural gas as a cleaner alternative to other fossil fuels.
[8] China announced plans in 2017 to develop a carbon trading system that would limit emissions of fossil fuels, including natural gas, but no specifics have been yet provided.
In the future, LNG will continue to play an integral role in satisfying China's demand for natural gas.
[8] China also faces many challenges on its way to increase natural gas production, such as the high investment costs required.
[8] Chinese demand for natural gas has been increasing over the past few decades until the COVID-19 pandemic disrupted international energy markets, especially in the case of China due to its reduced consumption during its lockdown.
The natural gas demand in China witnessed a notable decline in 2022, marking a historic shift in consumption patterns.
The change in trend signifies a significant turning point in the country's energy landscape and underscores the influence of diverse factors on China's consumption of natural gas.
[20] Despite the recent decline in Chinese natural gas demand, there are expectations of continued growth, albeit at a slower pace compared to historic levels.
[21] These contracts are expected to play a crucial role in supporting China's expanding natural gas market and contribute to meeting the country's energy needs in the coming years.
Current Chinese policy is encouraging natural gas to be obtained from a wide range of sources across the globe to protect energy supplies, which includes Russia.
