China targets stronger energy security in 15th five-year oil and gas plan

China aims to strengthen energy security, expand domestic oil and gas production and complete a comprehensive national petroleum reserve system by 2030 under its 15th five-year plan for the oil and gas sector, while also promoting green fuel development and the peaking of oil consumption, according to the plan jointly released by China's National Development and Reform Commission and National Energy Administration on Aug. 17.

The plan — centered on the dual objectives of safeguarding energy security and advancing green, low-carbon development — envisions the gradual establishment of a modern oil and gas industry system by 2030, characterized by stronger self-sufficiency, more efficient pipeline infrastructure, enhanced storage and reserve capabilities, greener production methods, higher-value processing, indigenous technological breakthroughs and more diversified international cooperation.

The plan was released as China navigates disruptions to Middle Eastern crude supplies from the ongoing regional conflict. However, the impact has been partly offset by rapid transport electrification, ample crude inventories, stable domestic production and steady pipeline imports, underscoring Beijing's focus on energy security.

Among the key targets, China's priorities continue to be enhancing its energy security and supply assurance capabilities, increasing domestic oil and gas production, fully establishing a strategic petroleum reserve system, and improving the efficiency and connectivity of its nationwide pipeline network.

The country also aims to further improve international cooperation, build a more diversified import system, expand overseas cooperation and strengthen its ability to manage supply risks.

By 2030, China's domestic oil and gas supply is targeted to reach 440 million metric tons of oil equivalent, up from 420 million mt of oil equivalent in 2025. The country also plans to add 20,000 km of long-distance oil and gas pipelines, raising the total length of the national trunk pipeline network to 220,000 km.

Upstream focus

On the upstream side, China pledged to intensify oil and gas exploration and development, as well as reserve additions and production growth, to further strengthen domestic supply.

The plan calls for breakthroughs in key technologies for the safe and efficient development of deep onshore and deepwater offshore resources. It also targets advances in the exploration and production of unconventional resources, including continental shale oil, deep shale gas and deep coalbed methane.

China will also seek improvements in enhanced oil recovery technologies for mature oil and gas fields and promote integrated exploration and three-dimensional development technologies for hydrocarbons and associated resources.

In January-July, China's crude oil output rose 0.9% to 4.42 million barrels/day, data from the National Bureau of Statistics showed, reflecting the country's oil companies' efforts to boost domestic production amid supply disruptions in the Middle East.

Petroleum reserves

China said it would complete the construction of a national petroleum reserve system comprising government strategic reserves, mandatory commercial reserves and companies' operational inventories.

The three components would function as complementary elements of a "major-country petroleum reserve system," significantly improving the country's resilience against supply disruptions and strengthening energy security.

The government will continue expanding strategic petroleum reserves, improve the corporate reserve obligation system and maintain reasonable commercial inventory levels. It will also encourage private-sector investment in storage facilities to further increase reserve capacity and strengthen monitoring of domestic oil supply and demand.

China's onshore crude inventory fell to 1.323 billion barrels as of July 30 from 1.368 billion barrels as of June 30, according to Ursa Space data. The volume rebounded to 1.324 billion barrels as of Aug. 6, the data showed.

As China's average crude throughput fell 6.5% year over year to 13.73 million b/d in the first seven months of 2026, the onshore inventories were likely to cover more than 96 days of refinery crude consumption, according to calculations from Platts, part of S&P Global Energy.

Diversified imports

The plan emphasizes further diversification of crude oil and natural gas imports by expanding strategic overland import corridors and enhancing connectivity of related infrastructure.

China also plans to optimize the structure and geographic distribution of its overseas oil and gas assets and strengthen international operating capabilities.

The country will maintain a diversified import strategy, participate more broadly in international oil and gas trade, and improve its ability to balance domestic, international markets and resources.

China has increased crude procurement from West Africa, Latin America and Russia to hedge the supply disruptions in the Middle East, Platts reported.

In the first half of 2026, China relied 44.6% of its crude imports from the Middle East, down from 55.4% in a year ago, Platts calculations from customs data showed.

Peak oil demand, refining reforms

While prioritizing energy security, China said it would promote the peaking of oil consumption through energy-efficiency improvements, carbon-reduction measures and upgrades across the petroleum value chain.

The plan supports the development of green fuels to supplement and substitute conventional petroleum products, including the orderly adoption of LNG-fueled heavy-duty trucks and waterborne vessels to accelerate the transportation sector's low-carbon transition.

It also calls for maintaining a moderate surplus of refining and petrochemical capacity to strengthen international competitiveness and provide a strategic buffer for oil security.

China's refining capacity rose by 0.7% year over year to 939.22 million mt/year (18.8 million b/d) in 2025, according to CNPC's Economics & Technology Research Institute.

In refining, the government reiterated its policy of "capacity replacement with overall reduction," under which new capacity additions will remain tightly controlled while existing capacity is optimized.

Authorities will continue promoting the transformation of refining feedstocks into chemicals, specialty products and advanced materials. Market-based and law-based measures will also be used to encourage refinery consolidation in key regions and eliminate outdated capacity.

The plan also further calls for studies to improve the refined products consumption tax regime and refine the country's fuel pricing mechanism.