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PERTH (miningweekly.com) – A new report from the Department of Industry, Innovation and Science has revealed that China’s demand for imported liquefied natural gas (LNG) could increase by 38% by 2030, depending on the government’s policy changes.
“China faces major challenges as it seeks to rebalance its economy from investment-led growth to consumption-led growth. An implication of moving to a consumption-driven economy is a decline in the share of high energy-intensive industrial sectors and an increase in the share of low energy-intensity services,” chief economist Mark Cully said on Tuesday.
Furthermore, China’s economic rebalancing was occurring at a time when major policy initiatives relating to energy security and environmental outcomes were gaining increased attention from policymakers.
One of these policies was the plan to increase the share of natural gas in China’s energy mix to obtain environmental benefits in the form of both lower atmospheric pollution and carbon dioxide emissions.
“China’s policies aim to deliver three key objectives: economic growth, environmental improvements and energy security,” said Cully.
Three key initiatives that were likely to affect natural gas demand and LNG imports included policies aimed at transitioning the economy towards service and consumption-led growth, improving air quality and reducing greenhouse gas emissions by lowering coal dependency, and increasing the production and use of unconventional gas.
However, Cully noted that the interaction of various economic and energy policies would play a large role in determining the scale of the demand for LNG and how it would be met.
“China’s future demand for natural gas, and LNG in particular, is of significant interest to Australia. China is expected to be a major source of incremental global demand for LNG in the coming years, and Australia is about to become the world’s largest LNG producer,” Cully said.
“Given the scale of China’s demand for natural gas, these changes could have a significant impact on the regional and global energy sector more broadly.”