Supply & Demand

Beijing backs gas – but what about LNG?

Gas will be critical to China’s energy transition, and the market is set for considerable expansion. However, continued massive LNG import growth is not guaranteed Gas will be critical to China’s energy transition, and the market is set for considerable expansion. However, continued massive LNG import growth is not guaranteed.
By Catriona Scott 26 November 2018 0 33402
The Chinese government is aiming for gas to account for 8-10% of the country’s energy mix by 2020. (Shell)

China is already the third-largest gas market in the world after the US and Russia. Gas demand boomed last year, and similar rates of growth are being seen this year. The substantial increase in gas use has forced up China’s imports and helped make the country the world’s second-largest LNG importer, putting it on course to overtake Japan in the number-one spot. China’s LNG imports are undoubtedly set for further expansion. However, they face competition – and the scale of LNG import expansion envisaged by...