Page 6 - GLNG Week 26 2021

GLNG COMMENTARY GLNG

China trims 2030 gas goal

The country’s energy planners have reduced gas’ projected share of

the 2030 primary energy mix from 15% to 12%

POLICY THE Chinese government’s pledge to reach car- A senior director of CNPC’s planning depart-
bon neutrality by 2060 has forced the country’s ment, Zhu Xingshan, told delegates on July 24
WHAT: energy planners to rethink the role natural gas that while gas would play a central role in help-
Gas demand is now will play in the national energy mix over the next ing to reduce the country’s coal consumption, it
projected to peak by four decades. would only account for 11% of national energy
2035. While the country will still depend on gas to demand by 2060.
help wean itself off coal and crude oil, China is China is aiming to reduce coal use from
WHY: planning for a future where non-fossil fuels will 56.8% of energy consumption in 2020 to below
The government is account for the vast majority of the country’s 56% this year, 44% by 2030 and 8% by 2060, the
focused on ensuring its energy needs. official Xinhua newswire quoted Zhu as saying.
carbon emissions peak As such, gas now is expected to account for Petroleum, meanwhile, is expected to see its
by 2030. 12% of national energy consumption by 2030, share of the energy mix fall to 18% by 2030 and
down from the long-held ambition for the 6% in 2060.
WHAT NEXT: cleaner burning fuel to account for 15%. Underwriting this fundamental shift will the
Beijing wants the country While still perceived as the bridging fuel to a rise of non-fossil fuels, which Zhu said would
to be carbon neutral by greener economy, it is now clear that the coun- account for 26% of the national energy mix by
2060. try’s mad dash for gas – which led to chronic 2030 and 75% in 2060.
shortages just a few winters ago – is beginning This means that demand for gas is antici-
to cool off. pated to peak by 2035, according to predictions
As the East Asian giant moves to overtake from state-owned oil and gas pipeline company
Japan as the world’s largest importer of LNG, PipeChina.
predicted by the International Energy Agency PipeChina executive Tang Shanhua told the
(IEA) to happen this year, long-term projections industry event that demand was likely to climb
of reduced demand from the market’s biggest from 326.2bn cubic metres in 2020 to 526 bcm
buyer will not be welcome news for the world’s by 2030, 650 bcm by 2035 and then retreat to 550
exporters. bcm by 2050. Tang said gas demand for power
generation would account for most of that
Revised figures growth, a sentiment echoed by the observers.
An industry conference heard from oil and gas State-run Sinopec has forecast that gas con-
executives last week that not only would gas sumption will rise by 9-12% this year to 350-
account for just 12% of the energy mix by 2030 360 bcm, with gas-fired power and industrial
but that demand itself would peak by 2035 before demand expected to drive that growth.
slowly declining. The vice-president of state-run PetroChina’s

The central government
has pushed coal-to-gas
conversion for years.

P6 www. NEWSBASE .com Week 26 02•July•2021