China’s Move to Clean Energy Is Driving Natural Gas Demand
06 Jan, 2020

China is seeing significant growth in demand for natural gas as the government encourages the switch away from coal to cleaner energy. The country is already in the second year of a new three-year action plan for cleaner air, under which targets have been set for reducing emissions of sulfur dioxide and nitrogen oxides and increasing the proportion of days with good air quality to 80 percent annually. In order to achieve this goal, the government is encouraging the generation sector to switch from using coal to natural gas, particularly for domestic heating, with the aim of having the natural gas account for 10 percent of energy consumption by 2020. Unsurprisingly, this policy goal is driving significant growth in natural gas demand. Gas consumption in China is expected to reach 310 billion cubic meters in 2019, a 10 percent increase on the previous year, according to the National Energy Administration.