Coal and renewables gear up for China demand fight

The engine of global gas demand growth may be at risk of a fuel problem

The prominence of gas in changing China’s coal-dominated power mix may face more substantial challenges than forecast from renewables and so-called ‘clean coal’—potentially calling into question the electricity sector’s oft-touted future role as a pillar of Chinese gas demand growth. Until recently, the consensus view was that the power sector would be a major contributor in bolstering China’s future gas consumption. Growth in gas demand for power generation grew by an estimated 30pc in 2018, with 281TWh of electricity produced from the cleaner-burning fuel, according to the IEA. The IEA forecast in 2018 that gas demand from China’s power sector would reach 84bn m³ by 2023, up from 50bn m³

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