ABSTRACT

This chapter aims to estimate how much China has to increase natural gas import to attain its greenhouse gas emission target under the Paris Agreement.

Natural gas demand increased about three times in about 10 years through the environmental and energy saving policies in China.

Since the 11th Five-Year Plan (2006–10), the Chinese government has changed its energy policy and encourages energy saving for sustainable growth from giving priority energy production capacity expansion. The government seems natural gas as clean energy resources which is equal to non-fossil energy; it also expects that natural gas will make a positive contribution for emission reduction and energy diversification.

Natural gas consumption accounts approximately 6% of Chinese energy mix, which is largely lower than world average (approximately 25%). According to the Chinese strategic action plan of energy development (it issued November, 2014 by the State Council), it sets natural gas consumption target more than 10% in 2020.

In the medium- to long-term view, natural gas demand in China is expected to growth. The supply-demand gap will expand to 50% from current 30% in 2040. But natural gas can make contribution for air pollution improvement and emission reduction in China. In addition, it will strengthen energy security in China through energy diversification.