China Natural Gas Development Report (2026)

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Editorial Information

Editorial Committee of China Natural Gas Development Report (2026)
Research Group: CNPC National High-End Think Tank Research Center, et al.
Guiding Institutions:

• Department of Oil and Gas, National Energy Administration
• Institute of Resource and Environmental Policy, Development Research Center of the State Council
• Oil and Gas Resources Strategic Research Center, Ministry of Natural Resources

Preface

In 2025, global developments became increasingly turbulent and intertwined, the world economy moved forward under pressure, the energy landscape was restructured at a faster pace, and the green transition progressed steadily. China’s natural gas industry thoroughly implemented the guiding principles of the 20th CPC National Congress and the plenary sessions of the 20th CPC Central Committee, earnestly carried out relevant policy deployments, coordinated high-quality development and high-level security, and adhered to system building and innovation-driven development. In natural gas consumption, production, and supply, the industry demonstrated strong resilience and market vitality, providing important support for China’s economic and social development and for the optimization and upgrading of its energy structure.

Looking back over the past five years, China’s natural gas industry has advanced steadily and rapidly. Domestic output repeatedly reached new highs; the “one national gas network” was basically completed; interconnection and interoperability improved markedly; and gas storage and peak-shaving capacity continued to grow. The industry withstood external risks and challenges and better met rising safeguard demand from the economy, society, and people’s livelihoods. Market-oriented reform was deepened continuously, the market system became progressively more complete, institutional development advanced, and industry supervision was strengthened. Consumption scale grew steadily, and the consumption structure was further optimized. In city gas, industrial fuel, power generation, transportation, and other fields, natural gas played a role in clean substitution and flexible support, laying a solid foundation for ensuring national energy security and promoting green and low-carbon transition.

Looking ahead, China’s natural gas industry will thoroughly implement CPC Central Committee and State Council decisions and plans, stay anchored to the goal of building China into an energy powerhouse, fully implement the new energy security strategy, serve construction of a new energy system, and build a more resilient, more dynamic, and more promising natural gas production-supply-storage-sales system. It will continue to strengthen supply security capability, improve core competitiveness, and strive to open a new journey of high-quality development.

Contents

1. Domestic and International Natural Gas Development Situation in 2025
2. Review of China’s Natural Gas Development During the 14th Five-Year Plan
3. Outlook for Natural Gas Development in 2026
4. Appendix: Provincial Natural Gas Consumption and Growth in 2025
5. Concluding Remarks
6. Major Events in China’s Natural Gas Development (2025–2026)

I. Domestic and International Natural Gas Development Situation in 2025

(I) Global Natural Gas Development: Slower Consumption Growth, Reconfigured Trade Pattern

1. Natural gas consumption growth slowed, and regional markets continued to diverge

In 2025, global natural gas consumption was 4.19 trillion cubic meters. Under the combined impact of a slower global economic growth rate and faster development of new energy, the year-on-year growth rate dropped from 2.5% in the previous year to 1.6%. Europe posted a second consecutive year of recovery, with annual consumption of 482.1 billion cubic meters, up 4.2% year on year, mainly due to cold waves early in the year, reduced wind and hydropower output, and increased gas use for residential heating and power generation. North America consumed 1.1 trillion cubic meters, up 1.6% year on year. The Asia-Pacific region consumed 976.1 billion cubic meters, with growth slowing from 4.5% in the previous year to 0.3%. Among major markets, South Korea’s consumption fell 0.4%; Japan’s consumption declined for a third consecutive year, down 0.3%.

2. Exploration and development investment adjusted at a high level, and production growth continued to rise

In 2025, global upstream oil and gas exploration and development investment was USD 530 billion, with clear regional divergence. The Asia-Pacific region saw the largest decline at 9.7%, followed by Russia-Central Asia and North America, down 4.1% and 2.0% respectively. Latin America and Africa rose by 10.6% and 6.0% year on year; Europe increased by 1.2%. Global natural gas output reached 4.20 trillion cubic meters, up 2.6% year on year. Among key producers, US output was 1.07 trillion cubic meters, with an increment of 41.9 billion cubic meters and a growth rate of 4.3%; the Middle East increased by 19.0 billion cubic meters; Russia decreased by 20.5 billion cubic meters, down 3.0%. Globally, 80 new gas fields were discovered, adding 529 billion cubic meters of reserves.

3. Natural gas trade grew faster, and the trade pattern continued to adjust

In 2025, global natural gas trade volume was 1.3 trillion cubic meters, up 2.7% year on year. Pipeline gas trade declined 0.5% year on year, accounting for 54.2% of total gas trade. LNG trade rose 6.4% year on year. US LNG exports reached 147.0 billion cubic meters, up 27.1% year on year, accounting for 25.4% of global LNG trade. Europe’s LNG imports reached 174.0 billion cubic meters, up 30.6%; Asia’s LNG imports were 360.3 billion cubic meters, down 4.0%. Among Asian importers, Japan imported 88.5 billion cubic meters, down 0.2%; South Korea imported 63.1 billion cubic meters, down 0.5%; emerging markets imported 58.4 billion cubic meters, up 2.6%. Global trade flows continued to shift: US LNG flows to Europe rose 62.1% year on year, while flows to Asia fell 36.8%. Newly signed global LNG long-term contracts reached 88.39 million tonnes per year, remaining at a historical high level.

4. Natural gas prices turned from decline to increase, and Europe-Asia price linkage strengthened

In 2025, under combined impacts including broad cold waves at the beginning of the year, interruption of Russian pipeline gas transit through Ukraine, and geopolitical conflicts, international spot gas prices ended a two-year decline and turned upward. The annual average Dutch TTF gas price was USD 11.9/MMBtu (RMB 3.0/m3), up 9.3% year on year. The annual average Northeast Asia LNG landed price (including long-term and spot cargoes) was USD 10.5/MMBtu (RMB 2.7/m3), down 7.6% year on year. Within that, the spot average was USD 12.7/MMBtu (RMB 3.2/m3), up 7.5%. The annual average Henry Hub price was USD 3.5/MMBtu (RMB 0.9/m3), up 61.0% year on year. Global LNG shipping freight rates fell for a third consecutive year; average freight from the US to Asia and Europe declined by 17.2% and 19.4% respectively.

5. Low-carbon process accelerated, and the role of gas-fired power became more prominent

The global LNG industry chain accelerated deployment of green electricity and renewable-powered solutions to reduce full-chain carbon emissions. Blended hydrogen application in natural gas systems made notable progress. Driven jointly by energy transition and surging electricity demand from AI computing power, the position of gas-fired generation as peaking and stabilizing power continued to rise. Projects under construction and planning increased significantly, and demand for gas turbines rose sharply. US utilities accelerated deployment of new gas-fired units to match fast-growing loads from data centers; Europe used gas-fired generation to fill supply gaps for computing infrastructure. In 2025, total newly signed global gas turbine orders reached 100 GW, up 75% year on year.

Data source note: Global data in this section mainly comes from the Energy Institute, S&P Global, Rystad Energy, and Cedigaz. China data mainly comes from the Ministry of Natural Resources, National Bureau of Statistics, General Administration of Customs, and industry statistics.

(II) China’s Natural Gas Development: Changing Supply-Demand Structure, Stronger Supply Security Resilience

Demand side: overall growth slowed, and growth drivers shifted

In 2025, China’s natural gas consumption grew 1.9% year on year. The share of natural gas in total primary energy consumption was 8.8%, basically unchanged from the previous year. City gas consumption rose 6.9% year on year, accounting for 36% of total consumption. Residential and heating demand grew steadily; public service and commercial gas use increased relatively fast; transport gas demand rose notably, with LNG heavy-truck sales hitting a record high. Bonded LNG bunkering business in coastal cities such as Shenzhen, Shanghai, and Ningbo grew rapidly. Gas use for power generation rose 5.3% year on year, accounting for 18% of total consumption; newly added gas-fired installed capacity exceeded 20 million kW, mainly in Guangdong, Sichuan, Chongqing, and other provinces. Industrial fuel gas consumption fell 3.3% year on year, accounting for 39% of total consumption, mainly due to weak demand in downstream traditional manufacturing. Gas use in chemicals and fertilizers was broadly flat year on year, accounting for 7%. By province, Guangdong remained first, exceeding 40 billion cubic meters; Jiangsu and Sichuan followed, each above 30 billion cubic meters; Shandong, Zhejiang, Xinjiang, and Shaanxi were in the 20-30 billion cubic meter range; Guangxi, Gansu, and Jilin saw relatively fast growth.

Domestic gas: key technology breakthroughs and significant reserve/output growth

In 2025, domestic exploration and development focused on breakthroughs in deep and ultra-deep, deepwater and ultra-deepwater, and unconventional fields. Progress was made in solving accumulation challenges in structurally fragmented zones, enabling scaled development of ultra-deep fractured reservoirs and overcoming key deepwater high-pressure drilling and completion technologies. The Sichuan Basin set new Asian records for deepest shale gas well and longest onshore horizontal section; in the Ordos Basin, deep coalbed methane sandless fracturing began to show results. During the year, newly proven geological reserves exceeded 1.8 trillion cubic meters, and output reached 262.1 billion cubic meters, up 6.0% year on year, with an increment of 15.6 billion cubic meters. This marked the ninth consecutive year with an annual increment above 10 billion cubic meters. In the Sichuan Basin, deep shale gas confirmed three reserve blocks each at 100 billion cubic meters scale; in the Junggar Basin, a new 100 billion cubic meter-class exploration field was opened below 6,000 meters; in the northern margin of the Qaidam Basin, a new 100 billion cubic meter-class reserve growth field was opened in the Upper Jurassic; in offshore Bohai Bay Basin, deep-layer frontiers were expanded. China’s offshore oil and gas development fully entered the 1,500-meter ultra-deepwater era.

Imported gas: total volume declined significantly, and source structure diverged

In 2025, China imported 176.5 billion cubic meters of natural gas, down 2.8% year on year. External sourcing dependency declined by 1.9 percentage points to 40.7%. Behind the “double decline” of import volume and external dependency were combined effects of sustained domestic output growth, changes in the energy structure, and volatility in international markets. Pipeline gas and LNG moved in opposite directions. Pipeline imports reached 82.1 billion cubic meters, up 8.0% year on year, and their share rose from 41.8% to 46.5%. LNG imports were 94.4 billion cubic meters, down 10.6%, and their share fell from 58.2% to 53.5%. Australia remained China’s largest LNG source; Qatar rose to second; direct US exports to China were close to zero.

Infrastructure: faster interconnection and improved storage capability

In 2025, about 6,000 km of new long-distance gas pipelines were built nationwide, the highest in five years. The central section of West-East Pipeline III (Zhongwei-Zaoyang), West-East Pipeline IV (Turpan-Zhongwei), and Hulin-Changchun pipeline were completed. Projects including West-East Pipeline II (Sichuan-East II) and Changchun-Shijiazhuang pipeline accelerated construction. Newly added storage capacity was 6 billion cubic meters. Storage facilities such as Changqing Yu-37, Tuha Wen-8, and Zhangxing were commissioned. Expansion projects at LNG receiving terminals in Shanghai Yangshan, Zhoushan in Zhejiang, and Beihai in Guangxi were put into operation. LNG terminal projects including Sinopec Longkou and PipeChina Longkou completed mechanical construction.

Industry governance: optimized policy framework and improved mechanisms

The Energy Law of the People’s Republic of China was fully implemented. The Measures for Planning, Construction, and Operation Management of Oil and Gas Infrastructure and the Measures for Regulation of Fair and Open Access to Oil and Gas Pipeline Network Facilities were formally issued. Industry governance moved further toward rule of law, market orientation, and standardization. Tiered incentive/subsidy mechanisms for shale gas and coalbed methane continued, stimulating enterprise output growth. Pipeline planning and construction were coordinated more effectively, fair-access regulation was strengthened, and penalty procedures and standards for breaches were refined, improving construction and operation efficiency of pipeline facilities. Market mechanisms for storage services, provincial pipeline transport pricing, and non-residential gas price linkage were further improved, with phased progress in market-based pricing.

II. Review of China’s Natural Gas Development During the 14th Five-Year Plan

Over the past five years, China’s natural gas industry fully practiced the new energy security strategy. The seven-year action plan for reserve and production growth was successfully completed. Domestic output repeatedly hit new highs; interconnection improved significantly; storage and peak-shaving capability rose steadily; and collaborative efficiency of industry and supply chains improved markedly. The industry withstood external risks and the impact of the century pandemic, and generally met rising safeguard demand from the economy, society, and people’s livelihoods.

(I) Multiple breakthroughs in exploration and development, and another five-year production record

During the 14th Five-Year Plan period, investment in oil and gas exploration and development was substantially increased nationwide, rising by nearly 40% versus the 13th Five-Year Plan period. Cumulative newly proven geological natural gas reserves exceeded 7 trillion cubic meters, around 28% higher than the same period of the 13th Five-Year Plan. Cumulative added gas production was nearly 70 billion cubic meters, 27% higher than the end of the 13th Five-Year Plan. Exploration advanced into 10,000-meter deep formations and into kilometer-scale deepwater. The Tak-1 deep well achieved a major 10,000-meter discovery; Lingshui 36-1 discovered the world’s first 100 billion cubic meter-class ultra-deepwater ultra-shallow giant gas field. Unconventional gas development made notable advances: in the Sichuan Basin, new formations and new belts achieved 100 billion cubic meter-class integrated proven blocks; in the Ordos Basin, five 100 billion cubic meter-class deep coalbed methane fields were discovered. Capacity construction in key basins accelerated comprehensively. In the Tarim Basin’s main gas fields, the share of ultra-deep production rose steadily; the Ordos Basin became China’s first 100-million-tonne-class oil and gas production basin; the Sichuan Basin annual output exceeded 80 billion cubic meters; and the South China Sea continued to expand gas output scale.

(II) Continuous growth in import resources and significant rise in trade capability

During the 14th Five-Year Plan period, China coordinated domestic and international markets and resources, expanded high-level international cooperation, and enhanced natural gas security under open conditions. The China-Russia East pipeline was fully connected end-to-end. China’s pipeline gas import capacity rose to 103 billion cubic meters per year, up 32 billion cubic meters per year from the end of the 13th Five-Year Plan. LNG receiving capacity rose to 170 million tonnes per year, up nearly 78 million tonnes per year from the end of the 13th Five-Year Plan. Annual gas imports increased by about 33 billion cubic meters versus the end of the 13th Five-Year Plan, including a 34.3 billion cubic meter increase in pipeline imports. LNG imports became more autonomous and controllable, with dynamic adjustment according to global supply-demand and prices, as well as domestic demand and resources. Imports peaked at 108.7 billion cubic meters in 2021 and were lowest at 87.4 billion cubic meters in 2022. Through more flexible trading strategies, China ensured domestic supply security while helping ease global LNG supply-demand tensions, acting as a stabilizer and regulator on the demand side of the international market.

(III) Basic completion of the “one national gas network,” with storage scale doubled

During the 14th Five-Year Plan period, China comprehensively strengthened natural gas infrastructure construction. More than 20,000 km of long-distance pipelines were added, including China-Russia East pipeline, central section of West-East Pipeline III, West-East Pipeline IV, and Phase I of the western Inner Mongolia pipeline. The transport pattern of west-to-east, north-to-south, offshore landfall, and regional mutual support was further improved. Total national gas pipeline length increased from 110,000 km to 134,000 km; one-time transmission capability of trunk pipelines increased from 260 billion cubic meters per year to above 400 billion cubic meters per year. By deploying large storage and large station clusters, underground storage projects such as Tongluoxia in Southwest China, Yaha in Tarim, and Nanpu No.1 in Jidong, and LNG receiving terminals such as Tianjin Beiran, Jiangsu Binhai, and Chaozhou Huaying were fully completed. National built storage capacity as a share of consumption rose from 7.2% at the end of the 13th Five-Year Plan to 12.6%, strongly supporting import reception, seasonal peak shaving, and emergency peak demand.

(IV) Steady growth in consumption scale, with greener use structure

During the 14th Five-Year Plan period, driven by energy transition and carbon goals, natural gas demand maintained relatively fast growth at an average annual rate of 5.7%, becoming an important energy source supporting comprehensive green transformation of economic and social development. City gas deepened livelihood energy upgrading; clean heating transformation in northern China achieved notable results; household heating in southern China developed rapidly. Over five years, cumulative new gasified population reached 110 million, and new gas-heated floor area exceeded 200 million square meters. The flexible balancing role of gas-fired power became prominent: cumulative new installed capacity reached 65.79 million kW; by the end of the period, gas-fired generation approached 360 billion kWh, up 44.3% from the start. Growth momentum in transportation accelerated: cumulative LNG heavy-truck sales over five years reached 625,000, 1.5 times the 13th Five-Year Plan level. LNG bunkering for ocean-going ships accelerated, with annual bunkering volume reaching about 1.2 billion cubic meters. Industrial fuel gas use grew steadily. With emphasis on low-carbon and multi-energy integration, key oil and gas fields implemented “gas + new energy integration” and waste-heat utilization, coordinated integrated wind-solar-gas-storage-hydrogen projects, and promoted green power substitution and green processes. In pipeline transport, hydrogen transmission and blending technologies were developed and applied in an orderly way. The Sinopec Ulanqab-Beijing-Tianjin-Hebei pure hydrogen pipeline completed preparatory work, and the Baotou-Linhe high-pressure long-distance pipeline with 10% hydrogen blending capability was commissioned.

(V) Deeper institutional reform and a more complete market system

During the 14th Five-Year Plan period, the natural gas industry focused on the reform mainline of “regulate the middle segment and liberalize both ends,” continuously advancing market-oriented reform. Competitive transfer of oil and gas blocks was normalized, and market entry in exploration and development was fully opened. More local SOEs, private enterprises, and social capital participated in exploration and development. The number of operating entities grew to nearly 100, with an initial diversified competition pattern. Revised implementation of the Measures for Planning, Construction, and Operation Management of Oil and Gas Infrastructure and the Measures for Natural Gas Utilization guided deeper market-system reform. Dispatch on national trunk networks became more flexible, pipeline layers continued to be compressed, and transport costs were further reduced. Cross-provincial pipeline pricing shifted from “one line, one price” to “one zone, one price,” and transport tariff rates declined by 5.7%. Provincial pipelines were progressively integrated into the national pipeline system in a market-oriented manner while separating transport and sales, with pricing transitioning toward zonal or province-wide uniform approaches. Fair and open access to infrastructure was normalized. Active shippers rose to over 100; small and medium shippers’ share of transported resources increased to 11%. Shared utilization of LNG terminals, storage facilities, and other infrastructure continued to improve. Non-residential gas prices were progressively liberalized; upstream-downstream linkage mechanisms were continuously improved; direct supply coverage for large industrial users expanded; and standardization and market allocation capability in city gas improved significantly.

(VI) Breakthroughs in theory and technology, with comprehensive rise in localization

During the 14th Five-Year Plan period, the natural gas industry focused on four domains: deep onshore, deepwater offshore, unconventional resources, and mature fields. It sustained key technology and core equipment localization efforts. Major equipment breakthroughs included the world’s first automated ultra-10,000-meter drilling rig, major onshore seismic exploration equipment, sonar for cavern measurement in salt-cavern gas storage, and compressor control systems. Welding and inspection technologies for 1422 mm large-diameter pipelines reached international advanced levels. LNG core technologies continued iterative optimization, forming a core technology system including full-containment storage tank series and full-lifecycle digitalization for receiving terminals. A self-developed 270,000 m3 LNG storage tank was commissioned. Continuous breakthroughs were made in large LNG carrier product development and construction processes. China’s first full-scale blowdown physical test for a 10 MPa high-pressure hydrogen pipeline was completed, providing key data support for pure hydrogen pipeline safety design and conversion of operating natural gas pipelines for hydrogen service. Digital and intelligent technologies were fully integrated across exploration and development, storage and dispatch, end-use, and safety control. A number of 10 billion cubic meter-class smart gas fields were completed. Based on self-developed pipeline simulation systems and intelligent equipment, core pipeline equipment can realize one-click startup/shutdown and remote control.

III. Outlook for Natural Gas Development in 2026

Since 2026, escalation of geopolitical conflicts and disruptions in key shipping lanes have tightened global gas supply and driven sharp rises in international gas prices. Facing a complex external environment, China’s natural gas industry has coordinated production, supply, storage, and sales, and market operation has remained generally stable. On the supply side, efforts continued to increase domestic reserves and production, stabilize pipeline gas imports, flexibly adjust LNG spot procurement, and fully utilize storage facilities for peak shaving, maintaining overall stability of industry and supply chains. On the demand side, with a systems approach and people-first orientation, gas-use structure was optimized and market mechanisms were better used. Through pooled-resource security supply, contract-based supply security, flexible adjustment, and multi-energy complementarity, the industry stabilized development expectations and the basic security supply framework, effectively responding to global market balance shifts and price volatility.

In the first half of the year, domestic gas production was 133.0 billion cubic meters, up about 1.6% year on year. Natural gas imports were 57.38 million tonnes, down 3.5%. Pipeline imports were down 1.2%; LNG imports were down 5.8%. Estimated domestic gas consumption (including inventory changes) was 213.0 billion cubic meters, up 1.1% year on year. By sector, city gas demand grew steadily, with strong pull from LNG heavy-truck use in transport; gas use for power generation was broadly flat, mainly because coal power and renewables (hydro, wind, and solar) supplied sufficiently; industrial gas demand declined, mainly because part of price-sensitive, high-energy-consuming, low-end industrial demand was substituted and crowded out; gas use in chemicals and fertilizers declined slightly.

If LNG exports from the Middle East can largely recover in the fourth quarter, market sentiment may ease. However, strong storage-refill demand in Europe and the US, extreme summer heat in Europe raising gas demand, and continuously improving resilience in China’s gas market all remain key factors. It is expected that in the second half of the year, global gas market supply-demand will stay relatively tight, and international gas prices will still face pressure of volatile movement at relatively high levels. China’s macroeconomy is growing steadily, and overall gas demand is stable. For full-year 2026, national natural gas consumption is expected to reach 435.0 billion cubic meters, up about 1%; domestic gas output is expected to maintain growth momentum; pipeline imports are expected to remain stable; LNG imports are expected to continue negative growth.

During the 15th Five-Year Plan period, China’s natural gas industry will focus on the goal of building an energy powerhouse. In line with overall deployment for building a new energy system, and adapting to changing conditions, it will focus on security, low-carbon transition, and innovation. It will vigorously advance oil and gas exploration and development, fully complete the “one national gas network,” deepen international energy cooperation, build a unified national natural gas market, and strive to build a modern gas industry system that is “more secure and resilient, better structured, stronger in development momentum, and more vibrant in market activity,” promote deep integration between natural gas and new energy, and strive to realize high-quality industry development.

Appendix: Provincial Natural Gas Consumption and Growth in 2025

Unit for consumption: 100 million cubic meters

Province	Consumption	Growth (%)	Province	Consumption	Growth (%)	Province	Consumption	Growth (%)
Beijing	190	-1.4	Anhui	121	6.5	Sichuan	320	8.4
Tianjin	126	-7.4	Fujian	75	8.4	Guizhou	35	10.8
Hebei	181	-5.9	Jiangxi	51	-1.0	Yunnan	37	9.5
Shanxi	129	4.0	Shandong	248	4.2	Xizang (Tibet)	1	44.8
Inner Mongolia	126	7.1	Henan	120	0.9	Shaanxi	207	10.6
Liaoning	99	1.0	Hubei	98	5.4	Gansu	56	18.8
Jilin	36	14.2	Hunan	55	2.8	Qinghai	39	-7.1
Heilongjiang	33	-0.5	Guangdong	406	-0.2	Ningxia	40	9.5
Shanghai	114	0.3	Guangxi	52	25.0	Xinjiang	209	3.5
Jiangsu	361	1.3	Hainan	67	-9.1
Zhejiang	214	6.6	Chongqing	155	7.7

Note: Excludes self-consumption at oilfields, pipeline own-use, and gas used by some LNG plants.

Concluding Remarks

The year 2026 is the opening year of the 15th Five-Year Plan and a key year for accelerating construction of a new energy system and building an energy powerhouse. China’s natural gas industry will continue improving the production-supply-storage-sales system, strengthening coordinated multi-energy complementarity, and demonstrating responsibility in enhancing energy security capability, supporting new-type power-system construction, and serving green and low-carbon transition. With high-quality development and high-level security, it will support Chinese modernization and make a strong start for energy-powerhouse construction during the 15th Five-Year Plan period.

China Natural Gas Development Report has now been published for eleven consecutive years. We thank the China National Petroleum Economics and Technology Research Institute, PetroChina Research Institute of Petroleum Exploration & Development, PetroChina Planning Institute, Sinopec Economics & Development Research Institute, CNOOC Energy Economics Institute, PipeChina Research Institute, PipeChina Engineering Technology Innovation Company, China International Engineering Consulting Corporation, State Grid Energy Research Institute, Peking University Institute of Energy, and Tsinghua University Institute of Climate Change and Sustainable Development for their active contributions to the report. We also thank relevant departments, enterprises and institutions, and industry experts for their strong support and assistance.

Major Events in China’s Natural Gas Development (2025–2026)

January 2025

• Jan 6: The National Energy Administration issued the Key Points of Energy Regulation Work for 2025 (NENGFA Jianguan [2025] No. 3).
• Jan 7: The National Development and Reform Commission issued the Notice on Issuing the Guidelines for Building a Unified National Market (Trial) (FGTG Tiga [2024] No. 1742).

February 2025

• Feb 16: The eastern section of the Sichuan-East Gas Pipeline II, a major 14th Five-Year energy infrastructure project, advanced comprehensively.
• Feb 20: China’s first scientific exploratory well beyond 10,000 meters, Deep-Earth Tak-1, was drilled to 10,910 meters, becoming Asia’s deepest and the world’s second-deepest vertical well.
• Feb 24: The D tank of Zhuhai LNG Phase II in Guangdong completed precooling and first filling, marking successful one-time commissioning of the world’s largest single-tank 270,000 m3 LNG tank in the Greater Bay Area.
• Feb 27: The National Energy Administration issued the Guiding Opinions on Energy Work for 2025 (NENGFA Guihua [2025] No. 16).

March 2025

• Mar 13: The Ministry of Finance issued the Measures for Management of Special Funds for Clean Energy Development (CAIJIAN [2025] No. 35), effective for 2025-2029, implementing differentiated incentive subsidies for unconventional gas such as coalbed methane, shale gas, and tight gas.
• Mar 25: The National Energy Administration held the 2025 national meeting on oil and gas infrastructure planning, construction, and pipeline protection.
• Mar 27: Drilling commenced at Well Kuping 7-4 of Banshen 37 gas storage, marking formal start of construction of China’s first “layered three-dimensional” coordinated storage project for gas and oil reservoirs.

April 2025

• Apr 2: The General Offices of the CPC Central Committee and State Council issued Opinions on Improving Price Governance Mechanisms, calling for deeper upstream-downstream natural gas price linkage.
• Apr 23: Changqing Oilfield completed drilling of China’s first 2,500-meter ultra-long horizontal-section deep coalbed methane well, setting three onshore deep CBM records.

May 2025

• May 13: Major breakthrough in the “Deep Earth Project: Sichuan-Chongqing Gas Base.” The Tiebei 1 sidetrack HF well in the Puguang area reached over 5,300 meters vertical depth with a 1,312-meter horizontal section, setting a Chinese shale-gas vertical-depth record.
• May 20: The 29th World Gas Conference (WGC 2025) opened at the China National Convention Center.
• May 24: The General Offices of the CPC Central Committee and State Council issued Opinions on Promoting Green and Low-Carbon Transition and Strengthening National Carbon Market Development.

June 2025

• Jun 25: Phase II of Deep Sea No. 1, the largest offshore gas field by domestic production, was fully commissioned.
• Jun 26: West-East Pipeline IV (Turpan-Zhongwei) was fully commissioned. Total length: 1,745 km. Annual transmission capacity: 15 billion cubic meters.

July 2025

• Jul 1: The newly revised Mineral Resources Law of the People’s Republic of China came into force.

August 2025

• Aug 1: The NDRC and NEA issued Guiding Opinions on Improving Intra-Provincial Pipeline Transport Pricing Mechanisms and Promoting High-Quality Industry Development (FGJG Jiage [2025] No. 1014).
• Aug 14: Newly proven reserves of 124.588 billion cubic meters in Yongchuan shale gas field passed review by the Ministry of Natural Resources, creating another deep integrated shale gas field above 100 billion cubic meters.
• Aug 21: Newly proven reserves of 165.025 billion cubic meters in Jianghan Hongxing shale gas field were approved, marking China’s first major Permian shale gas field.
• Aug 25: The Anyue gasfield loading point-Tongliang compressor station section of Sichuan-East Gas Pipeline II was commissioned (56.15 km), adding nearly 3 billion cubic meters annual outbound capacity.

September 2025

• Sep 9: Construction began on the Zhundong coal-to-gas trunk pipeline, China’s largest outbound pipeline for coal-based gas production base, to interconnect with the West-East pipeline system.
• Sep 17: Cumulative production from southern Sichuan shale gas field reached 100.04 billion cubic meters, making it China’s first shale gas field above 100 billion cubic meters cumulative output.
• Sep 29: The NDRC promulgated the Measures for Regulation of Fair and Open Access to Oil and Gas Pipeline Network Facilities (Order No. 33 of 2025), effective Nov 1, 2025.

October 2025

• Oct 17: The National Energy Administration organized the 2025-2026 heating-season gas supply security meeting.
• Oct 28: Jiangsu and Shanghai maritime authorities jointly issued safety requirements for LNG bulk carriers navigating sections of the Yangtze River, effective Dec 1, 2025.
• Oct 30: Joint operation testing for the central section (Zhongwei-Zaoyang) of West-East Pipeline III was completed, marking successful commissioning.

November 2025

• Nov 13: The NDRC issued the Measures for Planning, Construction, and Operation Management of Oil and Gas Infrastructure (Order No. 35 of 2025), effective Jan 1, 2026.
• Nov 19: China’s first residual-pressure power generation project on a high-pressure long-distance gas pipeline, at Haimen station in Nantong, Jiangsu, entered operation.

December 2025

• Dec 12: Shanghai Petroleum and Natural Gas Exchange launched China’s first national pipeline gas spot prices based on online trading, and concurrently released spot prices for provincial regions.
• Dec 23: Changqing Yu-37 gas storage began gas withdrawal operation. It is the world’s first pan-connected low-permeability gas-reservoir storage facility.
• Dec 26: Southwest Wanshunchang gas storage, the largest in southwest China, was approved by the NDRC. After completion, maximum daily peak-shaving capability of Sichuan-Chongqing storages will exceed 100 million cubic meters.
• Dec 29: The Sichuan section of Sichuan-East Gas Pipeline II started gas intake and operation, marking key progress in China’s east-west cross-country pipeline construction.

February 2026

• Feb 5: China completed the first field test of converting an existing long-distance pipeline to transport carbon dioxide (Huaxian-Puyang section of Zhonglu crude pipeline).
• Feb 14: The Ministry of Finance, GACC, and State Taxation Administration issued the Notice on Import Tax Incentives for Energy and Resource Exploration, Development, and Utilization During the 15th Five-Year Plan Period (CAIGUANSHUI [2026] No. 16), including VAT rebate for eligible imported natural gas.
• Feb 25: The world’s first zero-carbon reheating natural gas pressure-difference power generation system entered operation in Qufu, Shandong, with annual generation of 3.3 million kWh.
• Feb 28: National key infrastructure projects including Su-Wan-Yu trunk line, Wen 23-Anqing gas pipeline, and Shandong network North Trunk (Phase I) started simultaneously in Jiangsu, Anhui, Henan, and Shandong, marking a new stage of the “one national gas network.”

April 2026

• Apr 1: The operation at Changchun connection compressor station of the Hulin-Changchun pipeline project was successfully completed, realizing interconnection among Ha-Shen line, Chang-Ji line, and Hulin-Changchun pipeline.
• Apr 19: China’s first 100,000-household-scale natural gas hydrogen blending application project officially launched in Weifang, Shandong, with blending ratio 0-10% and annual hydrogen consumption of 13 million cubic meters.
• Apr 26: China’s first domestically designed and built 180,000 m3 LNG carrier, Georgetown, was delivered at China Merchants Heavy Industry wharf in Nantong, Jiangsu, currently the largest LNG vessel built in China.
• Apr 29: The Ministry of Natural Resources held a regular press conference introducing achievements of the new round of strategic mineral exploration breakthroughs. During the 14th Five-Year Plan period, cumulative investment in oil and gas exploration reached nearly RMB 450 billion, with 225 newly discovered medium-to-large oil and gas fields, both reserves and output hitting record highs.

May 2026

• May 13: Newly proven reserves of 235.687 billion cubic meters in Dongfeng shale gas field, Ziyang, Sichuan, were approved by the Ministry of Natural Resources, becoming China’s first ultra-deep shale gas field above 100 billion cubic meters at depth over 4,500 meters.
• May 15: The Qingning (Qingdao-Nanjing) pipeline and Jiangsu coastal pipeline interconnection project was commissioned, adding 3 billion cubic meters annual transmission capacity.

June 2026

• Jun 3: The National Energy Administration held the 2026 meeting on oil and gas infrastructure planning/construction and pipeline protection.
• Jun 25: The NDRC issued the 15th Five-Year Plan for New Energy System Construction (Fagai Nengyuan [2026] No. 884).
• Jun 30: The national major project Lianyungang-Huai’an crude pipeline passed commissioning-condition review and was ready for operation.