China’s major energy companies are increasingly focusing on natural gas as demand for oil slows. This shift comes amid rising global trade tensions and concerns over the risks of depending too much on oil imports.
China’s natural gas output is expected to surpass crude oil production for the first time this year. The country’s three state-owned energy giants—PetroChina, Cnooc, and Sinopec—are all setting higher production targets for natural gas. To achieve this, they are expanding into challenging areas such as shale fields and deep-water reserves.
The move towards gas began years ago, driven by the government’s efforts to reduce coal-related pollution in large cities. However, this transition has gained urgency as the rapid growth of electric vehicles (EVs) reduces the demand for oil. As a result, gas has become the primary growth sector for energy producers.
Cnooc President Yan Hongtao highlighted the strong demand for natural gas, stating last week at the company’s earnings briefing, “Buyers will take all the gas we produce — there’s tremendous growth potential.”
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