Beijing Bolsters Energy Security Amid Geopolitical Risks
China has announced a new five-year plan to bolster its energy security amid growing geopolitical risks. The plan, unveiled by the National Development and Reform Commission and the National Energy Administration, aims to expand the country's network of pipelines and increase domestic oil supply.
The plan targets a domestic supply of 440 million tonnes of oil equivalent by 2030, while adding 20,000 km of new long-distance oil and natural gas pipelines. This will bring the national network to 220,000 km, enough to circle the Earth more than five times.
China also aims to reach peak oil consumption by 2030 through greater use of green fuels, improved energy efficiency, and electrification. The plan calls for natural gas storage capacity to exceed 13 per cent of national consumption by 2030 and for the annual handling capacity of liquefied natural gas (LNG) terminals to be raised to 200 million tonnes.
The announcement comes as Beijing seeks to mitigate the risks associated with its reliance on imported fossil fuels. The prolonged conflict in the Middle East and disruptions to shipping through the Strait of Hormuz have highlighted the need for greater energy security.