Brattle Associate Yingxia Yang contributed a chapter to the newly-released book, Research on China’s Gas Development Strategy.
The book examines China’s natural gas development strategy – including resource supply, end-use consumption, and pipeline infrastructure – in an era that requires adjusting the energy structure for a cleaner energy future and addressing the country’s air pollution problem, while also meeting increased energy demand. The research discussed in the book is led in partnership by China’s Development and Research Center of the State Council and Royal Dutch Shell plc, with contributions from industry and government experts and academics, both in China and internationally. The results of the research provide part of the basis for establishing the Chinese central government’s 13th Five-Year Plan (2016-2020) for social and economic development.
Dr. Yang contributed to a chapter that focuses on examining the future trends of the international natural gas market, the potential natural gas supply China can obtain from this market, and what policies and measures China should take regarding natural gas imports to ensure natural gas supply security. The research shows that based on China’s existing and potential contracts with both LNG and pipeline imports, China is likely to be in a long position on the LNG import for the near future and, furthermore, the potential imports from Australia, Canada, and Russia help to diversify its import portfolio and reduce its historically heavy reliance on the central Asia pipeline import. However, uncertainties and risks still exist, requiring China to improve its ability to hedge the risks through various measures.