Left with a limited pipeline capacity and inland coverage, the China market is focusing aggressively on trucking to manage the irregularities in liquefied natural gas deliveries. According to a report by Wood Mackenzie, a global chemicals, energy, renewables, and metals and mining research and consultancy agency, issued on Monday, June 04, 2018, China’s trucking capacity of liquefied natural gas (LNG) is likely to get doubled, touching 38 million tons by the end of 2025.
The report by Wood Mackenzie states that that China has the biggest market for LNG trucking, worldwide. As the economy, now, relies more on natural gas, trucked LNG can make up for the commercial, industrial, and residential customers outside pipeline coverage. The consultancy further states that trucking is one of the most feasible options in today’s scenario as it isn’t economical to construct or expand pipelines to areas that are not covered. A senior manager at Wood Mackenzie, Miaoru Huang, states in the report that the gas demand in China is expected to reach 9.3 trillion cubic feet by the end of 2018. Similar to the last year, 12% of the overall demand will be aided by LNG trucking.
As predicted by The International Monetary Fund, the growth in the gross domestic product in China will be at 6.6% in 2018. Economic advisors in Beijing are concentrating on qualitative growth as the GDP alleviates toward 6.4% from 2019. Meanwhile, the country is shifting towards becoming a low-carbon economy and is planning to utilize the super-cooled form of natural gas as a bridge fuel. The central bank of China opted to expand the lending tools to support the green economic sectors last week.