The Chinese government aims to triple its gas supply by 2030, from 205 bcm in 2016 to 600 bcm, by more than doubling its domestic gas production from 137 bcm in 2016 to 300 bcm in 2030 and by developing gas imports from around 70 bcm in 2016 to 300 bcm by 2030.
Domestic supply covered gas consumption (around 200 bcm) in 2016 but China plans to replace coal-fired power capacities with gas-fired capacities to reduce air pollution in cities and to meet its Paris climate agreement commitments (cutting CO2 emissions per unit of GDP by 60-65% by 2030, compared to 2005 level), which will require new gas supplies. Gas consumption should rise to between 450 bcm and 500 bcm by 2030 and China would then become the second largest gas consumer worldwide, behind the United States.
Chinese gas producers such as state-owned Sinopec plan to boost domestic gas exploration, focusing on the development of shale gas resources, while other are investing in gas interests abroad (Australia, Russia, Kazakhstan). In addition, China is developing new gas import pipelines, from Central Asia and Turkmenistan in particular, and from Russia (Power of Siberia gas pipeline project expected in 2019). LNG import capacities should also be doubled in five years.
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