China is rapidly expanding its coal-to-gas (CTG) industry to strengthen energy security and reduce reliance on imported gas. Rystad Energy expects China’s CTG capacity to reach 9.4 billion cubic meters annually by 2026 and 28 billion cubic meters by 2030, with Xinjiang emerging as the main production hub due to its low-cost coal.
The expansion is supported by strong demand and competitive prices, although water use, carbon emissions and environmental concerns remain challenges. If capacity reaches the 2030 target, CTG could reduce China’s LNG imports and become a structural factor influencing global LNG demand and prices.
