81. China’s Quest for Gas Supply Security: The Global Implications
- Author:
- Sylvie Cornot-Gandolphe
- Publication Date:
- 09-2019
- Content Type:
- Special Report
- Institution:
- Institut français des relations internationales (IFRI)
- Abstract:
- The major transformations that are occurring on the Chinese gas market have profound repercussions on the global gas and LNG markets, especially on trade, investment and prices. In just two years, China has become the world’s first gas importer and is on track to become the largest importer of Liquefied natural gas (LNG). China alone explained 63% of the net global LNG demand growth in 2018 and now accounts for 17% of global LNG imports. The pace and scale of China’s LNG imports have reshaped the global LNG market. Over the past two years, fears of an LNG supply glut have largely been replaced by warnings that the lack of investments in new LNG capacity would lead to a supply shortage in the mid-2020s unless more LNG production project commitments are made soon. There is now a bullish outlook for future global LNG demand which has encouraged companies to sanction additional LNG projects, based on the anticipated supply shortage. China’s gas imports can be expected to continue to grow strongly, from 120 billion cubic meters (bcm) in 2018 to up to 300 bcm by 2030.
- Topic:
- Security, Energy Policy, International Trade and Finance, and Gas
- Political Geography:
- China, Europe, Asia, Global Focus, and United States of America