Powered by Max Banner Ads 

China’s Gas Demand in Bid to Reduce Emissions Outpaces Its Production

K.J. Rodgers
Crownsville, Maryland  


China is putting all the cards on the table to reduce emissions with natural gas, but their demand is much higher than their production capacity.

China is the world’s largest emissions contributor. Images of smog clouding the daily lives of Chinese citizens have become a common scene in the country. It’s a very dreary view as people must walk about their day wearing a facemask – almost as if it has turned into a Chinese OSHA Requirement.

This is not a scene China wants to come to mind when you think of the Red Dragon country and they are looking to clear the air. Despite their super-low-cost solar panels, they are not looking to renewables to produce clean energy and to power their heavy industries; they are looking at natural gas as it is cheap, efficient, and clean.

Last year, we covered how the US and China reached a trade deal on liquified natural gas, LNG. The $26 billion per year deal solidified our LNG export capacity to key Asian markets. The significance of the Chinese LNG deal for the US is their new ability to negotiate directly with American suppliers; however, our LNG is a drop in the bucket for their demands. It is only 7% of their demand! China is putting all the card on the table while betting on natural gas. They have reached enormous other deals with Russia, including a direct pipeline from the Kremlin as part of their $400 billion energy pact.

The biggest kicker is that they also produce their own gas. In 2017, they saw an 8.5% rise in production up to 147.4 billion cubic meters, BCM, from 2016 when they were the sixth-largest gas producer. Consumption demand surged in 2017 by 15% making their demand 237 BCM, while climbing 12.5% more in 2018 to 270 BCM and expecting to reach 317 BCM by 2020.

Their demand far outpaces their ability to produce, even though they are a top-ten contender for natural gas reserves. Their gas basins face a number of geo and technological challenges. The depth of the wells, lack of water for operations, and being rich in sulphur, all contribute to a plateau situation. They are just breaking even and that is with their government subsidies to prop up their production, leaving them to fill the forecasted additional 132 BCM of demand with imports. They’re talking big money, big investments, and even bigger demands. Their long-term reliance on coal is shifting as they switch factories and millions of homes over to natural gas.

The fun of this doesn’t stop here. Clearly, China’s investments into imports and a Russian pipeline signals they have their mind made up that natural gas is the answer to their emissions. However, when you look at the environmentalists’ side, they are offering a little different spin. It would be painful to read if you didn’t know how big of a sham the Natural Resources Defense Council (NRDC) is, but it is hilarious to see that elitist gang dance around the topic of natural gas use in China.

Like me, they are praising China for opting to move away from coal and clean up their emissions. Where the divide comes is that we recognize their investment in natural gas is China’s solution, while the NRDC gang skips the gas conversation entirely and only praises China for moving away from coal. The NRDC only briefly mentions renewables and perhaps that’s because the Rockefeller family—the special interest force behind the NRDC—is invested heavily in importing gas, oil and petrochemicals into China from other countries.

The NRDC focuses on China’s 13th 5-year plan that is actually doing nothing more than switching coal out with natural gas, but the gang highlights the coal reduction targets and revitalized monitoring programs to reduce particulates. Granted their article is from December 2016, but this shows how they refuse to acknowledge how big of an impact natural gas is having.

The NRCD can try to spin China’s newfound desire to reduce smog however they want, but money trails tell the truth. The money isn’t being spent on installing solar panels or wind turbines, they are investing in solutions geared to their own special interests, not just feel-good band-aids.

Print Friendly, PDF & Email
Email this to someoneShare on FacebookShare on LinkedInShare on Google+Digg thisFlattr the authorShare on RedditShare on YummlyShare on StumbleUponTweet about this on TwitterShare on TumblrBuffer this pagePin on Pinterest

2 thoughts on “China’s Gas Demand in Bid to Reduce Emissions Outpaces Its Production

  1. Carbon intensity is smoke and mirrors – it’s a measure of productivity in terms of carbon use per unit of GDP. So, if GDP goes up faster than carbon use goes up, then carbon intensity goes down (2005 to 2013 in China).

    As you clearly point out – it’s all about the money.

    Speaking of money: The guy in charge of fixing the climate change problem at the UN was Ottmar Edenhoffer and here is what he said in 2010: “One must remove himself from the illusion that international climate policy is doing anything for the environment. But one must say clearly that we redistribute de facto the world’s wealth by climate policy.”

    • The only “green” thing that alarmists care about is money, whether they know it or not. If they were actually serious about protecting “Mother Earth”, they would be out in front with upgrading our existing infrastructure and pollution control technology plus promoting the reuse of materials. We have the ability to cut energy costs, its overall use which reduces emissions still stay true to the concept of Conservation but it is somehow “sexier” to use group think via a flawed “religion”. The Spanish Inquisition of lore is alive and well amongst the fractivists and their ilk, unfortunately.

Leave a Reply

Your email address will not be published. Required fields are marked *

 Powered by Max Banner Ads