China's liquefied natural gas (LNG) market is set to have a prosperous future, experts in the industry said.
The country is looking at improving its air quality, as pollution is causing severe health issues among the population. Coal accounts for 80% of electricity production for households, a figure expected to decrease.
LNG is seen as a suitable alternative to other fossil fuels because it is reliable and provides security of supply. At the moment, China has less gas penetration than regions like the U.S. or Europe, but interest in LNG is increasing substantially.
As an indication, 2018 was not considered significant in terms of economic growth. However China became the world's largest natural gas importer.
Imports are expanding with projects such as the Power of Siberia, a 1,800-mile pipeline implemented by Gazprom to transfer LNG from Russia to Eastern China.
Jason Bordoff, a professor at Columbia University, explained at the International Petroleum Week Conference in London that natural gas has a material influence in the relationship with the U.S., and China could be a potential investor in American LNG exports.
Industry and building were the leading LNG-using sectors, with 40% growth in LNG market currently projected to reach 73% by 2030. A new area of application for LNG is transport, in particular heavy-duty trucks or buses. In 2018, over 300,000 vehicles on Chinese roads were fueled by LNG.
The aim is to connect homes and businesses to a cleaner grid. Paired with suitable infrastructure, LNG allows more flexibility, experts said. There is currently a strong seasonality in demand because of a lack of facilities for storage.
However LNG is flexible enough to cater to sudden increases in demand.
"The security of supply LNG gives is unique," said head of LNG at Vitol, Pablo Galante Escobar, at the conference.
Source:sxcoal
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