articles Corporate /en/research-insights/articles/opportunities-and-challenges-of-chinas-lng-expansion content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Opportunities and challenges of China’s LNG expansion

S&P Global

Daily Update: October 8, 2020

S&P Global Platts

Alaska oil output tax proposal puts state’s future production at risk Fuel for Thought

S&P Global Platts

BP’s summer surprise shines spotlight on stranded oil, gas assets: Fuel for Thought

S&P Global Platts

From waste to fuel: the prospects for renewable natural gas in the US


Opportunities and challenges of China’s LNG expansion

As China’s LNG demand grows, pressure to turn domestic gas sector liberalization guidelines into policy and push for greater flexibility in international supply agreements will follow, with challenges and opportunities for all LNG stakeholders

China’s coal-to-gas conversion policies, GDP expansion and industrial recovery are increasing the country’s gas consumption to record highs. With domestic output and pipeline imports unable to keep up, LNG is needed to bridge this gap.

In 2017, China became the largest contributor to global LNG consumption growth, surpassing South Korea as the world’s second biggest LNG importer, and its share of global LNG demand is expected to converge with that of Japan by 2030.

The country’s spot requirements are also growing, as its contracted obligations rise much slower than its demand projections, meaning Chinese importers will play an increasing role in global LNG market fundamentals and prices.

As the share of LNG in China’s gas consumption rises, domestic competition grows, and a robust LNG benchmark emerges, the erosion of the traditional oil-linked LNG supply model becomes inevitable, in favor of deals that are shorter, smaller and more flexible, and priced not against an associated commodity but LNG itself.

Energy mix, economy and industry driving gas demand

China’s policy directives are encouraging coal-togas switching to combat air pollution and are set to continue driving up the share of natural gas in the country’s energy mix and domestic consumption of the fuel.

As part of its 13th Five-Year Plan, the Chinese government intends to cut annual coal consumption by 160 million mt by 2020 and raise the proportion of gas in the country’s energy consumption to 10% by 2020, and 15% by 2030 – up from 7% in 2017.

China’s expanding economy and the revival of its industrial activity have also been key drivers of energy and gas consumption growth over the past year, and could play an even bigger role than fuel conversion programs in boosting demand looking forward.

The National Development and Reform Commission forecasts Chinese annual gas demand to nearly double from 237 Bcm in 2017 to 450 Bcm by 2030.

The+stats+you+need+to+know+about+Chinese+gas+demand%2C+which+is+expected+to+surge+on+a+fast-growing+economy%2C+environmental+concerns+and+market+liberalization.