There is no doubting China’s determination to encourage greater use of natural gas in its energy mix, with policy being the main driver, as Part One of this two-part series made clear. Here, in Part Two, LNG Business Review focuses on the constraints standing in the way of policy, and what policy-makers, regulators and the natural gas companies are doing to address them.
A huge national effort is under way to reinforce physical production, import and delivery infrastructure, with numerous new projects being proposed and construction schedules accelerated. There are even suggestions that China may form a national gas pipeline company to rationalise the network and boost third-party access. The clear conclusion is that China’s gas use will continue to grow at double-digit rates for the foreseeable future, with imports of LNG playing an ever-greater role.
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