China Natural Gas Consumption is projected to rise by 6.5% to 7.7% in 2024, potentially reaching 425 billion cubic meters. This anticipated increase is due to higher industrial activity and growing energy needs. Domestic production is expected to supply around 246 billion cubic meters, which will cover roughly half of the total demand. In comparison, last year, China’s consumption was 394.5 billion cubic meters, marking a 7.6% increase from 2022.
The first half of 2024 saw a notable 6% rise in production, reaching 123.6 billion cubic meters. Notably, June’s production surged by 9.6% compared to the same month in 2023. This significant increase in production is crucial for reducing China’s reliance on imported natural gas.
Imports also saw a substantial rise, increasing by 14.3% to 64.65 million tons. This surge is partly due to a decrease in gas prices. The average LNG price fell to just over $9 per MMBtu in early 2024, down from $18 per MMBtu a year ago. This price drop has made imports more attractive for Chinese buyers.
To address the growing demand and decrease import dependency, China has been actively enhancing its domestic production capabilities. The government has established a new umbrella company involving key industry players such as CNPC and Sinopec. This initiative aims to boost production and ensure a reliable and stable energy supply.
By focusing on increasing China Natural Gas Consumption and improving domestic production, China is positioning itself to better meet its energy needs and reduce its reliance on imports.
China's natural gas consumption is set to increase by 6.5% to 7.7% in 2024, reaching 425 billion cubic meters.
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