China Tripling Coal-to-Gas Capacity by 2030 Amid Energy Security Concerns

China is rapidly expanding its coal-to-gas industry to ensure energy security and reduce reliance on imported liquefied natural gas (LNG). The country aims to triple its coal-to-gas capacity from 2026 to 2030, reaching 28 billion cubic meters per year. This growth will supplement LNG imports rather than replace them.

China's vast coal reserves in Xinjiang offer a significant advantage for the coal-to-gas industry. Mine-mouth coal prices in the region average around $30 per metric ton, less than 40% of the equivalent price in Inner Mongolia.

The expansion of coal-to-gas capacity is part of China's 15th Five-Year Plan, which also includes increased infrastructure for pipeline gas and LNG imports. The country plans to increase its onshore natural gas pipelines' import capacity to 114 billion cubic meters annually by 2030.