Market reforms and a determined push to meet ambitious emissions reduction targets are driving natural gas demand growth in China on a scale that most forecasters continue to underestimate. However, while the fundamentals underlying future growth remain strong, concerns over energy shortages and prices, not least because of the impact of Russia’s invasion of Ukraine, are generating considerable policy uncertainty.
This feature, the first in a two-part series, will look at what is driving gas demand in China and the implications for the growth of the country’s LNG needs. Part two will consider how these needs are likely to be met in a world of persistently high prices as LNG buyers compete ever more fiercely to secure tight supplies.
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