China's gas producers lobby for more power plants to support demand

Bloomberg says China’s natural gas sector is lobbying Beijing to increase the number of power plants in an attempt to boost demand. At the moment, the country’s energy sector accounts for 18% of fuel consumption. New gas-fired power plants with a total capacity of 70 gigawatts could be built in China by 2030, the new agency reports. 

Over the last few years, China’s gas demand has slowed due to booming renewable-energy supply, weaker industrial activity, and continued coal use. Additionally, a warm winter and large inventories have prompted analysts to lower their forecasts for the country’s imports of liquified natural gas this year, Bloomberg says. 

The news agency notes that gas power can play an important role in China's energy mix due to its ability to rapidly ramp up the capacity. However, domestic producers now have to face technical challenges and high costs while developing gas deposits. Storage constraints also limit the companies’ ability to meet peak demand and handle seasonal consumption spikes.