China’s Natural Gas Development Strategy under the Constraints of arbon Peak and Carbon Neutrality

Abstract

Natural gas is a stable and flexible low-carbon fossil energy. It has comparative advantages on both supply and consumption sides. It can be used as a transitional energy for constructing a clean, low-carbon, safe, and efficient new energy system and for achieving carbon peak and carbon neutrality. Currently, China’s energy transition has many scheme designs. Huge differences exist in the development prospects of natural gas. In this study, we analyze the relationship, challenges, and principles of carbon peak and carbon neutrality. Based on these analyses, we study the opportunities for natural gas development in China, explore the comparative advantages of natural gas in key areas such as power generation, transportation, city gas, and industry, and summarize the constraints in terms of terminal prices, infrastructure, pricing mechanism, and development speed. We also propose the development goals and key tasks of China’s natural gas. Finally, five recommendations are proposed for China’s natural gas development under the carbon goals. The first is to strengthen top-level coordination and leadership to clarify the development positioning and ideas of natural gas.The second is to maximize the comparative advantages to promote natural gas consumption. The third is to rationally use domestic and foreign resources to ensure sufficient and reliable supply. The fourth is to promote infrastructure construction to improve the supply efficiency. The fifth is to strengthen the policies and mechanisms for land, finance, taxation.

Keywords

• carbon peak, carbon neutrality, energy transition, natural gas, comparative advantages