China Natural Gas Demand Expected To Stay Stable In 2026

China's natural gas demand is expected to remain broadly stable in 2026 as the country's macroeconomic growth continues at a steady pace, according to the China Natural Gas Development Report (2026) released by the National Energy Administration on July 24.

The report forecasts that China's natural gas consumption will reach 435 billion cubic meters in 2026, an increase of about 1% year on year. Natural gas production is expected to maintain growth momentum, while pipeline gas imports remain stable and LNG imports continue to decline.

China's Natural Gas Consumption Growth Slows In 2026

According to the report, China's natural gas consumption is projected to increase by 1.9% year on year in 2026, with growth slowing by 5.4 percentage points compared with the previous year.

Natural gas is expected to account for 8.8% of China's total primary energy consumption, remaining largely unchanged from the previous year.

From the perspective of consumption structure, urban gas consumption is forecast to grow by 6.9%, accounting for 36% of total natural gas consumption. Residential gas use and heating demand are expected to maintain steady growth, while public services and commercial gas consumption will expand rapidly. Transportation-related gas demand is also expected to rise significantly, with LNG heavy-duty truck sales reaching a record high.

Gas consumption for power generation is projected to increase by 5.3%, representing 18% of total consumption. Newly added gas-fired power capacity is expected to exceed 20 million kilowatts, mainly concentrated in provinces including Guangdong, Sichuan, and Chongqing.

Industrial fuel consumption is expected to decline by 3.3%, accounting for 39% of total natural gas consumption, mainly due to weaker demand from traditional downstream manufacturing industries. Gas consumption for chemical and fertilizer production is expected to remain nearly unchanged from the previous year, accounting for 7% of total consumption.

China Maintains Natural Gas Production Growth Momentum

The report noted that China added more than 1.8 trillion cubic meters of newly proven geological natural gas reserves in 2025.

Natural gas production reached 262.1 billion cubic meters in 2025, up 6% year on year, with an increase of 15.6 billion cubic meters. China has maintained annual production growth of more than 10 billion cubic meters for nine consecutive years.

China imported 176.5 billion cubic meters of natural gas in 2025, down 2.8% year on year. The country's external dependence on natural gas imports declined by 1.9 percentage points to 40.7%.

During the same period, China added around 6,000 kilometers of long-distance natural gas pipelines, marking a five-year high.

Natural Gas Imports Decline While Market Conditions Remain Tight

In the first half of 2026, China's natural gas production reached 133 billion cubic meters, increasing by about 1.6% year on year. Natural gas imports totaled 57.38 million tonnes, down 3.5% from the previous year.

The report expects global natural gas supply and demand conditions to remain relatively tight in the second half of 2026, with international gas prices facing continued pressure from high-level fluctuations.

Meanwhile, China's steady economic growth is expected to support stable natural gas demand throughout the year.