China Is Reshaping Global Natural Gas Market
China is becoming the world's supply and demand center of LNG (liquefied natural gas)
. Either the upgrading of domestic energy structure or the rapid growth of import is forcing China to reshape the global natural gas market.
Customs statistics show that China's imported liquefied natural gas (LNG) rose 35%, to 5.62 million tons in the first quarter of this year. Energy strategic transformation brought by energy revolution increasingly demands for clean energy, especially natural gas. According to the work plan for energy industry to strengthen the prevention and control of atmospheric pollution, consumption proportion of natural gas
in China will reach 7% by 2015.
Zeng Xingqiu, the vice chairman of China Energy Research Center of Investment Association, told reporter: “natural gas important transformative energy, whose consumption is continuously increasing. Whether China will become the center of LNG consumption in 2020 is up for debate. However, it is certainly that China will be an important consumption area.”
It is estimated by McKinsey that China could surpass South Korea and be the world's second largest LNG buyer, only second to Japan by the end of 2020. At that time, imports will rise from 18 million tons to 61 million tons, mainly form Australia. China's natural gas supply capacity will reach 400 billion cubic meters annually.
China is a huge market which provides an important market channels for international manufactures. It is analysed that global natural gas price is under downward trend as Australia and the United States exporting a large number of LNG in the future. It is wise that large state-owned enterprises sign long-term supply contracts with overseas companies to compete for resources and lock the prices. The market competition will be more intense with growing gas resources.