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Time:March 23-25, 2019
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Sponsor:Development Research Center of the State Council
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2018丨【Total】Natural gas should play a key role in transforming Chinese energy landscape

By implementing massive renewable capacities, and promoting gas as a substitute to coal, China already demonstrates its commitment to shifting its energy mix, and addressing global warming and air pollution issues.

This trend is even more important for China than for other countries, because of the very high population density of its coastal areas, and the sustained power demand growth of the country.

In this context, it is not a surprise to see that gas is taking up market shares in the energy mix, fully in line with the Chinese 13th 5-year plan and worldwide scenarios reported by International Energy Agency in their simulations to reach the COP21 objectives.

As a matter of facts, gas has a number of benefits in power generation, not only in terms of climate change mitigation and air quality improvement, but also in terms of supply stability, flexibility and competitiveness. Gas may also facilitate renewables penetration into the power mix, mitigating the intermittence of these new sources with a limited impact on the environment.

At a time when the country seeks to lower its power carbon footprint, China might take benefit of the changes undergone by the worldwide LNG markets. LNG is becoming an affordable and abundant resource for the years to come. The whole LNG value chain is contributing to maintaining a competitive price, from gas production to transport and trading, through technology breakthroughs and new business models. The favorable context as well as the product specificities make LNG a clean and affordable solution to the challenges faced by China.