China has made significant strides in building an enviable natural gas supply, positioning itself as the world's largest LNG importer and the second-largest reseller. The recent operational launch of Guangdong Energy Group's $1 billion LNG terminal in Huizhou marks a pivotal development in China's energy infrastructure. Furthermore, Total Energies has extended its LNG deal with China National Offshore Oil Corporation until 2034, securing 1.25 million tonnes per year, which underscores China's negotiating power in the global energy market. The second phase of the Shenhai Yihao gas field has also commenced operations, contributing to China's robust gas supply capabilities [2d00e44f].
In 2023, China's gas imports averaged 16 billion cubic feet per day, accounting for 42% of the country's total gas supply. The Power of Siberia pipeline is expected to reach a capacity of 38 billion cubic meters per year by 2025, further enhancing China's energy security. Additionally, China's 14th Five-Year Plan aims for a domestic gas production target of 22.3 billion cubic feet per day by 2025, reflecting the government's commitment to expanding its natural gas sector [2d00e44f].
However, the growth of China's gas sector is moderating as the country increasingly turns towards renewable energy sources. A report by S&P Global indicates that while gas is cleaner than coal, it still emits CO2, raising concerns about the long-term sustainability of prioritizing gas over coal. This transition is crucial for meeting climate goals, and balancing the use of natural gas with the rise of renewables presents a significant dilemma for China as it navigates its energy future [2d00e44f].
As the global energy landscape evolves, China must carefully consider its energy policies to ensure that its natural gas supply supports both economic growth and environmental sustainability. The ongoing developments in LNG infrastructure and international partnerships will play a critical role in shaping China's energy strategy in the coming years.