China's Coal-to-Gas Industry Set to Triple by 2030, Rystad Says
As nations race to cut import exposure to geopolitical tensions, China is building the world’s only large-scale coal-to-gas (CTG) industry as a strategic buffer against supply shocks. No other country has developed synthetic gas from coal at any meaningful scale. China’s 15th Five-Year Plan, covering 2026 to 2030, strengthens CTG’s role in its domestic supply architecture, signaling a move from…
China's coal-to-gas industry is poised for significant growth, with the sector expected to expand nearly fourfold by 2030, according to Rystad Energy. This strategic shift is driven by a desire to reduce dependence on foreign energy sources amidst geopolitical tensions. Currently, China's CTG capacity stands at 9.4 billion cubic meters annually, but it is projected to surge to 28 Bcm by the end of the period.
This transformation is centered in Xinjiang, where low-cost mine-mouth coal prices have created a competitive advantage for synthetic gas production. The industry is expected to undergo a rapid expansion, with new plants coming online in as little as 12 months. Despite challenges such as water availability and environmental regulations, China is committed to developing its CTG sector as a hedge against LNG supply uncertainties.
This expansion is anticipated to impact global LNG markets, making it a critical factor for exporters worldwide.
Written by urgent.news from OilPrice's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
