China’s natural gas demand growth has slowed in recent years due to weaker industrial activity, rising renewable energy use, and continued reliance on coal for power generation. In response, domestic gas producers are urging authorities to increase the number of gas-fired power plants, which they see as the main driver for future growth, according to sources advising on energy policy.
The power sector currently accounts for about 18% of China’s natural gas consumption. It is now proposing to add nearly 70 gigawatts (GW) of gas-fired power capacity by 2030. This would represent a nearly 50% increase from 2025 levels, the sources said.
China’s LNG imports have weakened this year, as high stockpiles, a mild winter, and cheaper domestic and pipeline gas from Russia and Central Asia reduce demand. BloombergNEF estimates that LNG imports will decline in 2025, marking China’s first annual drop since 2022.
Despite the push for more gas power plants, expanding gas-fired capacity faces cost challenges. Gas is more expensive than solar energy, and coal remains the main baseload power source capable of meeting peak demand.
After a dip in coal power plant approvals in 2024, China’s pipeline for new coal-fired plants bounced back in early 2025, according to Greenpeace East Asia. China leads the world in renewable energy installations but also remains the top consumer of coal and the main driver of record global coal demand.
China is also aiming to raise domestic coal demand and prices this year, as coal prices have been low, hurting coal producers’ profits.