Mainly, the consumption of natural gas in China exceeded 27 million cubic meters in 2018, presenting a year on year rise of up to 10%.
The analysis presents that the restrictions contribute to the little growth potential of the production volume of natural gas in China. Specifically, in 2018, the production volume of natural gas in China was about 160.30 billion cubic meters, representing a YOY increase of 8.30%, a growth rate far lower than that of the consumption volume.
In addition, the 2018 import volume of LNG in China reached 53.78 million tonnes, increasing by 41% year on year. The growth was mainly driven by China's increasing demand for LNG, the use of new LNG terminals and the performance of new LNG contracts.
In the end of 2018, the yearly handling capacity of LNG terminals in China were 66.95 tonnes. Thus, LNG terminals under extended construction in Tangshan, Qingdao and Rudong will see a significant increase in handling capacity after they are put into service.
The research presents that the natural gas importers in China have signed many LNG procurement contracts with global natural gas suppliers. For example, in 2018, China National Petroleum Corporation (CNPC) signed LNG import contracts with Cheniere, Qatargas and Exxon Mobil; China National Offshore Oil Corporation (CNOOC) signed LNG import contract with Petroliam Nasional Berhad (PETRONAS).
As natural gas is environmentally friendly and easy to transport and use, the demand for natural gas in China is expected to keep rising from 2019 to 2023. As the growth rate of the production volume is far lower than that of the demand, the import volume of natural gas in China will keep growing from 2019 to 2023.
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