In 2022, China's apparent consumption of natural gas reached 366.3 billion cubic meters, the first decline in 20 years. This is the news from the 2023 International Technology Forum for Liquefied Natural Gas (LNG) Industry and the Fourth National LNG Industry Alliance Conference held in Xi'an, Shaanxi from May 11th to 12th.

It is understood that in 2022, the national natural gas production reached 217.8 billion cubic meters, showing a year-on-year increase of 6.4%; The apparent consumption of natural gas reached 366.3 billion cubic meters, a year-on-year decrease of 1.7%. This is the first decline in natural gas consumption in 20 years. At the same time, the domestic LNG import volume also experienced the first decline in nearly 7 years, a year-on-year decrease of 19.5%, and the external dependence of natural gas decreased to 40.5%.

Guo Zonghua, Chairman of Shaanxi Provincial Gas Design Institute Co., Ltd., Liu Chunjiang, Senior Engineer of the Consulting Center of Petrochina Changqing Oilfield Company, and other experts believe that since 2022, the global epidemic has dela, economic growth slowed down, and Russia-Ukraine conflict has had a huge impact on the natural gas industry, resulting in a shortage of natural gas supply, rising prices, and the market is extremely sensitive and vulnerable to geopolitical risks.

The decrease in consumption due to high prices indicates the existence of a 'ceiling' phenomenon in the natural gas market, and the affordable gas prices for users are limited. "Yang Jianhong, Chairman and Chief Researcher of Beijing Shichuang Energy Consulting Co., Ltd., said that in 2022, the national natural gas prices were at a high level, and the overall market was in a weak state.

Liu Chunjiang analyzed that the main reason for the decrease in natural gas consumption is the economic slowdown caused by the epidemic and the high international LNG spot prices, which should be a temporary phenomenon only.

Experts attending the meeting believe that in the context of global climate change, carbon reduction and emission reduction provide greater space for natural gas consumption. At present, China's natural gas accounts for only 8.9% of the primary energy consumption, far below the world average, and the future market demand is still large.

Yang Jianhong revealed that based on the resource conditions and current consumption situation of conventional and unconventional natural gas, global natural gas resources can meet the demand for 100 years and are still in the development period of natural gas consumption. It is expected that natural gas consumption will show an explosive increase by 2040. He suggested promoting the implementation of upstream and downstream price linkage mechanisms for "gas electricity" from a policy perspective, addressing the relationship between the rigidity of natural gas supply and market elasticity, and increasing natural gas reserves.