China’s energy strategy: Portfolio and power in gas market

China’s natural gas market is transitioning from a domestically driven supply structure toward an import-based rebalancing phase. The country’s natural gas import structure does not rely on a single supplier; rather, it is based on a diversified and multi-layered portfolio strategy across both pipeline gas and liquefied natural gas (LNG), granting China significant bargaining power in the global gas market. While the country meets approximately 40% of its gas demand through imports, a substantial portion of these imports is delivered as LNG via maritime routes, with the remainder supplied through pipelines. Range of supplier portfolio On the pipeline gas side, China’s largest supplier is Central Asia, particularly Turkmenistan, which alone accounts for approximately 45% of China’s pipeline gas imports. Russia follows, with its share approaching the 35 to 40% range, while Kazakhstan, Uzbekistan and Myanmar also contribute smaller volumes to the system.