Bloomberg News

China May Need to Boost LNG Imports by 80%, Wood Mackenzie Says

May 22, 2012

China may need to boost imports of liquefied natural gas by about 80 percent from current contracted volumes to meet demand for the fuel, according to Wood Mackenzie Ltd.

The world’s biggest energy user may need to purchase an additional 37 million metric tons of LNG by 2030 on top of current contracted volumes of 46 million tons, Graham Tyler, manager of gas and power research for Southeast Asia, said in Singapore today. The country may import about 68 billion cubic meters a gas a year from Russia via pipeline, he said.

Shale gas development in China may grow after 2023 because the geology of the basins may require companies to develop new drilling and hydraulic fracturing techniques, Tyler said.

China may link gas prices to oil in three to four years, Tyler said. The country is implementing a price ceiling for natural gas sold in Guandong and Guangxi provinces as part of a trial that may extend across the country, according to the National Development and Reform Commission.

Imports of LNG by China rose 34 percent to 1.13 million metric tons in March from a year earlier, according to customs data. Japan, the world’s biggest LNG consumer, imported about 78.5 million tons in 2011, according to customs data.

To contact the reporter on this story: Dinakar Sethuraman in New Delhi at dinakar@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net


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