Key facts
- China's coal-to-gas (CTG) capacity is projected to triple by 2030.
- The projected annual CTG capacity by 2030 is 28 billion cubic meters.
- China is prioritizing energy security amid geopolitical tensions.
- Xinjiang province is leading the expansion of CTG capacity.
- Lower coal prices in Xinjiang make CTG competitive with imported LNG.
China's capacity for producing gas from coal is projected to triple by the year 2030, reaching an annual output of 28 billion cubic meters. This significant expansion is primarily motivated by China's strategic prioritization of energy security, particularly in the context of ongoing geopolitical tensions. The province of Xinjiang is leading this surge in coal-to-gas (CTG) development. This is largely due to the availability of lower coal prices in the region, which makes the cost of producing gas from coal competitive with the price of imported liquefied natural gas (LNG). The Rystad Energy report highlights this trend as a key development in China's energy landscape, aiming to enhance domestic energy self-sufficiency and reduce reliance on foreign energy sources.