“Strong domestic demand growth is set to drive up China’s energy imports to new record highs, both in 2024 and 2025, solidifying its position as the world’s largest LNG market,” Sadamori said Photo: Bloomberg
China is set to remain the world’s top buyer of liquefied natural gas (LNG) this year and next because of strong industrial demand, Keisuke Sadamori, a director with the International Energy Agency (IEA), said on Monday.
China, the world’s second-biggest economy after the US, last year overtook Japan as the world’s top LNG buyer as Japanese demand is falling amid nuclear reactor restarts, the roll out of renewable energy and overall weak economic development.
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Natural gas demand in China rose by around 10% in the first eight months of the year and is set to expand by 16% by 2025 from 2023 driven mainly by industrial sectors, Sadamori told a conference in Hiroshima on Monday.
“Strong domestic demand growth is set to drive up China’s energy imports to new record highs, both in 2024 and 2025, solidifying its position as the world’s largest LNG market,” Sadamori said.
China produces its own gas, in addition to importing natural gas through pipelines, and receives LNG via terminals.
The IEA estimates that gas demand in India will rise by nearly 9% this year and by 8% in 2025 amid rising energy demand to power economic expansion along with strong gas consumption in the transport industry, according to Sadamori.
“The future of Russian gas transit by Ukraine is a key uncertainty ahead of this winter, as the Russian gas transit contract with Ukraine expires at the end of this year,” he said, adding that no new transit deal could trigger higher LNG imports by Europe in 2025 and tighter global gas balance as a result.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Oct 07 2024 | 9:33 AM IST
