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    CNPC sees share of gas in Chinese mix at 12% in 2030: Press

Summary

The share of gas in the Chinese energy mix stood at 8.7% in 2020.

by: Shardul Sharma

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CNPC sees share of gas in Chinese mix at 12% in 2030: Press

China is expected to increase the share of natural gas in its primary energy mix to 12% in 2030 from 8.7% in 2020, Reuters reported on June 24 citing an official from state-run CNPC.

Zhu Xingshan, senior director, planning department CNPC told a conference on June 24 that the share of natural gas in energy consumption is expected to increase "significantly" from 2030 to 2035.

CNPC expects China to cut its coal use to 44% of energy consumption by 2030 and 8% by 2060 as the country aims to use more natural gas to achieve its climate change goals.

Gas consumption has been rising steadily in recent years and usage in 2021 has been especially strong. Imports of LNG have also seen strong year-on-year growth. WoodMac last week said that strong demand for LNG means China will surpass Japan to become the world's biggest importer of chilled fuel this year. 

After a lacklustre 2020, Asian LNG demand firmly returned to growth in the first five months of 2021, with China the single biggest contributor, WoodMac said. It expects 11mn metric tons of demand growth from the country this year, meaning China will account for over half of the 18mn mt of the increase in global LNG demand forecast for 2021 and a little over one-third of global LNG growth in 2022.

"With its LNG demand bolstered by clear policy support and strong gas market fundamentals, China's top spot looks assured for years to come," WoodMac said.  

In 2020, China’s LNG imports were 67.13mn mt, up 11.5% from the previous year, the government said in January. The country’s LNG imports during the first five months of 2021 were up 31% yr/yr to 33.23mn mt. Meanwhile, Japan last year imported 74.46mn mt of LNG, down 3.7% yr/yr.