Energy and Environmental Policy Trends: The Growing Opportunity for LNG in China

Abstract

THE GROWING OPPORTUNITY FOR LNG IN CHINA Natural gas consumption in China has been growing rapidly since 2006 and was 237 billion cubic metres in 2017. Domestic natural gas production has not kept pace, leaving substantial opportunity for LNG importers. In 2016 the Chinese National Development and Reform Commission released the 13th Five-Year Plan for the Natural Gas Industry, which set a goal of natural gas accounting for 10% of total primary energy consumption by 2020. China’s total energy consumption in 2016 was equivalent to 3,053 million barrels of oil; natural gas accounted for 189.3 million barrels of oil equivalent, 6.2% of total energy consumption.