CHINA REPORT
“By 2025, the national gas storage capacity of intensive layout will reach 55 billion ~ 60 billion cubic meters, accounting for about 13% of natural gas consumption. Build a green and low-carbon transportation system, optimize and adjust the transportation structure, vigorously develop multi-modal transport, promote the medium and long-distance transportation of bulk goods “from rail to water”, encourage the use of clean fuels such as LNG in the field of heavy-duty trucks and ships, and strengthen the guarantee of clean energy supply in the transportation industry. It is emphasized that the LNG storage and transportation system in Bohai Rim region, Yangtze River Delta region and Guangdong Hong Kong Macao Bay area should be continuously improved, and the core is the construction of LNG terminal.”
Source: NDRC Read The Article
PSR Analysis. China’s LNG import volume in 2022 is expected to surpass Japan and become the world’s largest LNG importer. At the same time, China has built 22 LNG terminals. There are more than 200 LNG manufacturers in China, with an annual capacity of about 30 million tons.
Meanwhile, in 2020, the supply of domestic LNG reached 21.97 billion cubic meters, a year-on-year increase of 12.68%. In addition to pipeline gas, the feed gas of these factories also includes coal-bed methane, shale gas, coke oven gas and coal to gas.
Heavy truck vehicle exhaust emission is an important pollution source of vehicle emission. Trucks use natural gas, and PM2.5 emission can be reduced by 93% compared with that of diesel. At the same time, it is much easier for a gas engine to meet the national six emission standards than a diesel engine.
Since January 1, 2021, China’s heavy trucks have begun to fully implement the national six emission standards. The advantages of environmental protection and economy will significantly increase the market competitiveness of LNG heavy trucks. At the national level, LNG heavy trucks play an important role in realizing China’s “double carbon” goal and promoting the healthy development of China’s natural gas industry.
As a “transformational” fuel, LNG is leading the shipping industry towards a cleaner and environmentally friendly future. Compared with diesel powered ships, the use of LNG powered ships will effectively reduce the emissions of 20% carbon, 80% nitrogen oxides and 100% sulfur oxides and particles. It is the most effective way for the shipping industry to reduce emissions at this stage. While actively promoting the goal of “double carbon”, the market demand for relatively clean LNG is increasing rapidly, and the market of LNG carriers will also grow quickly. PSR
Jack Hao is Senior Research Manager – China, for Power Systems Research
