China extends its massive gas pipeline grids, by 2025

China plans to extend its massive gas pipeline grids to 163,000 kilometres, requiring a capital expenditure of up to USD 1.9T, by 2025.

China is on the verge of a spending spree to expand the country’s natural gas pipeline grids over the next four years to transport greater volumes to more clients and utilities.

Extravagant spending pledges on gas infrastructure reflects China’s strategy to prioritize gas consumption, considered the most effective bridge fuel to bring emissions down before renewable energy can play a more significant role in the economy.

The pipeline, dubbed Sila Sibiri 2, is billed as offering the capacity to deliver 50 billion cubic metres per annum of gas to the Chinese market.

CNPC said that natural gas demand will peak at 650 Bcm by 2040, after which it will taper off to 410 Bcm in 2060.

The major drivers for gas demand growth were identified as power generation, industry utilities and construction.

China’s gas consumption is expected to rise 8.2% year-on-year to 395 Bcm in 2022.

Of the total 395 Bcm gas, almost 222 Bcm will come from domestic production, up 6.2% on the year, while 62 Bcm will be pipeline gas imports.

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