China’s gas demand to rise significantly by 2020

China’s gas demand will increase substantially by 2020 as the country is seeking to cut its addiction to coal to reduce pollution, Yalan Li, Chairperson of the Board of Directors of Beijing Gas Group said on Thursday.

Although natural gas production and use is rapidly increasing in China, the fuel currently comprises only about 6 percent of the total primary energy consumption.

“We will continue to boost natural gas consumption and increase our efforts to replace coal with natural gas,” Li said during a keynote speech at the World Gas Conference in Paris.

According to Li, China has eleven LNG import terminals in operation with a total capacity of 41 million tonnes per year. The country also has another 12 terminals in construction.

China’s natural gas supplies are expected to reach 370-400 billion cubic meters by 2020. Out of this 230-250 bcm will be domestically produced, while the rest will be imported, Li said.

“China will diversify its natural gas supply by encouraging domestic exploration of unconventional natural gas, and by increasing imports by actively engaging in global gas projects and LNG trading,” Li concluded.

LNG World News Staff