Here is the conclusion of a nice piece by David Sandalow, Akos Losz and Shang Yan from Columbia’s SIPA Center on Global Energy Policy on growing natural gas demand in China:
”Natural gas will play a growing role in China’s energy mix in the years ahead, as a core part of the Chinese leadership’s strategy for responding to serious environmental challenges, including urban air pollution and climate change. Domestic production and pipeline imports will be unable to keep up with rapidly growing demand, leaving LNG imports to fill the gap. Infrastructure constraints may limit LNG imports in the short term but will likely be resolved within several years.
The impact of LNG trade on the US-China bilateral trade deficit will be modest at most. Nevertheless, that trade could offer benefits to companies in both countries if trade tensions do not interfere.
China is shaking up natural gas markets as it emerges as the world’s leading LNG importer in the next decade. Chinese LNG demand will be instrumental in investment in LNG supply around the world, including—potentially—the United States. Chinese natural gas could also deliver significant environmental benefits both in China and globally, although there are risks with respect to methane leakage that must be addressed.
As in other parts of the energy sector, as the giant awakens, the world will notice.”
Here is a chart showing future LNG demand projections:
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