China Boosts Coal-to-Gas Capacity to Reduce LNG Dependence

China is investing in coal-to-gas production to reduce its reliance on liquefied natural gas (LNG) imports. According to Rystad Energy, China's CTG capacity will reach 9.4 billion cubic meters per year by the end of 2026 and 28 Bcm annually by 2030.

The expansion is driven by Beijing's energy security doctrine, which prioritizes domestic production over imported supplies. This move could constrain future demand for LNG and reshape competition among major exporters.

China's CTG program is also supported by its 15th Five-Year Plan, which strengthens the role of synthetic gas in the country's domestic gas supply architecture.