CHINA-THE’MOVE’TO LNG Examining the Primary Drivers for Uptake of LNG as a Transport fuel in China

摘要

Liquefied Natural Gas (LNG) as transportation fuel takes up over a quarter of the domestic market for LNG in China.In 2017,road and marine,with majority being road transportation,consumed about 5.45 million metric tonnes of LNG sourced either from domestic LNG plants or imported LNG.LNG fuelled vehicles increased 41% to about 310,700 units,with LNG heavy duty truck sales growth hitting a record high of over 500%,adding 91,100 more to total 210,000 units by the end of 2017.This was incentivized mostly by the diesel-LNG price differential,government policy support and improved logistics industry driven by stronger economic growth.Conversely,the growth rate of LNG refilling stations in China continued to slow down since 2013,reaching 2528 stations nationwide by the end of 2017.Gas shortage during winter 2017/18,coupled with government's request to prioritize supply to the residential sector,also created some pressure on supply availability/security of LNG fuel,although this has been much less severe in winter 2018/19.This paper will take a closer look at driving factors of the strong growth of LNG consumption in the transportation sector,analysing their influence on the development and challenges of this particular market from the perspectives of alternative fuels,infrastructure development and policy/regulation impact.It will explore how LNG can play a greater role in building a cleaner transportation system.