China’s National Energy Administration has projected the country’s Natural Gas consumption to touch 320 billion cubic metres (bcm) this year.
Although it indicates an upward trend by increasing 4.2% (or 13 bcm), the government research report shows it is the slowest growth pace in the last five years. Demand for natural gas grew just 1.5% in the first half of 2020. This could be attributed to slowed economic activity and dented demand for energy owing to the COVID-19 pandemic.
“The coronavirus outbreak has had a major impact on China’s economic, societal and energy development. Consequently, the growth rate of the demand for natural gas has been suppressed significantly,” the department said.
The increase in consumption is mainly due to China’s efforts to ramp up its oil and gas exploration as well as development activities. In addition, the city gas sector supported the demand. It took less of a hit from the pandemic and posted over 10% growth year-on-year in the first half.
China slashed gas prices, after which, industrial gas consumption recovered to the same levels as last year by end-June.
The report also revealed that in 2019, China’s natural gas imports increased by 6.9% to 135.2 bcm. However, imports were down in 2020 compared to the previous year.
Since 2019, the country has been pushing forward market-oriented reform of the natural gas market. This includes opening up of the oil and gas exploration and development market in an orderly manner, promoting the building of a unified national network, and giving full play to the positive role of gas in air pollution prevention and control.
