• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 1 hour Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 1 day EIA Reports Are Fraudulent : EIA Is Conspiring With Trump To Keep Oil Prices Low
  • 1 hour So You Think We’re Reducing Fossil Fuel? — Think Again
  • 24 mins How is E&P of Marginal Oil on the UKCS Similar to the Shale Oil Operations in the US?
  • 5 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 5 hours N.Y. Governor Signs Climate Bill
  • 58 mins Renewables provided only about 4% of total global energy needs in 2018
  • 19 mins Iran Says It Arrested 17 CIA Spies, Some Sentenced To Death
  • 15 hours Shale Oil will it self destruct?
  • 5 hours First limpet mines . . . . now fly a drone at low altitude directly at U.S. Navy ship. Think Iran wanted it taken out ? Maybe ? YES
  • 2 days Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 16 mins Which is a better domain name for OAPEC?
  • 21 hours U.S. Administration Moves To End Asylum Protections For Central Americans
  • 4 hours Today in Energy
Alt Text

Is This The Last Bottleneck For Nord Stream 2?

The controversial Nord Stream 2…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

China Could Quadruple Gas Imports By 2030

China has become the usual suspect when it comes to commodity prices. Whether it’s crude oil or copper, LNG or gold, China is almost invariably the first place everyone looks for an explanation as to why prices are up or down. Now Asia’s largest economy is on its way to swing the international gas market, and swing it big.

According to CNPC, the state-owned oil and gas giant, natural gas imports could jump to as much as 270 billion cubic meters annually by 2030. To put this in perspective, gas imports in 2015 totaled 53 billion cubic meters, with total consumption that year reaching 200 billion cubic meters.

The increase will come largely thanks to a general shift toward cleaner energy sources as China seeks to clean up its image as one of the biggest polluters in the world. The shift is also part of a government strategy to move away from heavy industry to services as a growth driver.

The news, though just an estimate, as noted by CNPC’s head of the International Department Li Yueqiang, could be the best news for the global gas industry in a while. With a saturated market and prices at multi-year lows, things recently have been as gloomy for the gas business as it has been for oil. A fourfold rise in imports in 14 years is not a chance to be missed by gas producers. But then again, not every prospective exporter to China is equal.

Gazprom is perhaps best placed for the moment. The Russian company is already working, in partnership with CNPC, on the Power of Siberia pipeline that will have an annual capacity of 38 billion cubic meters of natural gas. Naturally, Gazprom is working to make sure there is demand for this gas, with its latest move in this respect a memorandum of understanding with CNPC for the construction of gas-fired power plants. Related: The Rumors Are Back! Oil Rallies On OPEC Chatter

Russia as a whole is also better placed than potential competitors for the moment. Last year, CNPC’s deputy director-general told media that China could import as much as 100 billion cubic meters of natural gas annually by 2020. The figure includes both pipeline gas and LNG.

LNG is where Russian suppliers may face stiff competition from major producers such as Australia. The Asian LNG market is depressed due to oversupply, but with China undertaking to cut harmful emissions by, among other measures, increasing the share of gas in its energy mix to 60 percent, things are set to change.

There is also another factor that could neutralize the significance of CNPC’s estimates, and that’s local production. China has huge shale gas resources, and local energy majors are paying growing attention to the development of these resources. Sinopec, for one, plans to increase its local gas production twofold by 2020.

It doesn’t become clear from the CNPC estimate whether this looming increase in local production has been fully factored into the calculation of the import figures, and it could make a huge difference. In any case, one thing is certain: China will become a major market swinger when it comes to natural gas.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment
  • Godfree Roberts on August 08 2016 said:
    It's misleading and abusive to say 'as China seeks to clean up its image as one of the biggest polluters in the world.'

    China has the biggest population so its aggregate pollution is bigger than, say, Estonia's. But the Chinese per capita pollution is among the lowest in the world: about one fourth of Americans' for example.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play