What role should natural gas play in breaking the deadlock of the energy transition?

Recently, the 29th World Gas Conference, hailed as the "Olympic Games" of the global gas industry, was held in Beijing. This marks the first time the conference has taken place in China since its inception in 1931. Over 3,000 guests from more than 70 countries gathered to engage in in-depth discussions on critical topics such as energy security and the green transition.

Natural gas consumption will peak in 2035, with multiple stakeholders supporting the transition.

Currently, the global energy system is undergoing profound transformation. Li Yalan, President of the International Gas Union, stated that natural gas is the world's third-largest energy source, with annual consumption exceeding 4 trillion cubic meters, accounting for 24% of the global energy mix—and it is a key energy source in achieving the transition to a low-carbon energy future.

Over the past decade, China's incremental natural gas consumption accounted for one-third of the global total, making it the primary engine driving global natural gas growth.

China's "14th Five-Year" energy plan outlines that by 2025, annual natural gas production will surpass 230 billion cubic meters, while storage facilities and pipeline networks will be accelerated in parallel, enhancing overall supply security.

China Petroleum & Chemical Corporation Chairman Ma Yongsheng stated that, under the "Dual Carbon" goals, natural gas is expected to reach its consumption peak around 2035. He noted, "The global market landscape is rapidly evolving, and international cooperation is the key to breaking the current impasse."

As the largest offshore oil and gas producer in China, Zhou Xinhua, Director and General Manager of China National Offshore Oil Corporation (CNOOC), believes that "natural gas has become a vital driver propelling the global energy transition." Over the past five years, CNOOC's annual LNG (liquefied natural gas) imports have accounted for approximately half of the country's total, effectively safeguarding regional energy security through its dual strategy of "offshore gas + LNG." Zhou Xinhua emphasized that LNG boasts exceptional flexibility, enabling stable energy supply even in scenarios such as extreme weather conditions or geopolitical conflicts. As a low-carbon energy source, LNG is playing a crucial role in supporting the global shift toward greener energy systems. Moreover, its growing prominence is not only reshaping the dynamics of the global natural gas market but also profoundly influencing the evolution of the worldwide energy landscape.

During the conference, the International Gas Union (IGU) released its "2025 Global LNG Report," which revealed that global LNG trade volume grew by 2.4% year-on-year in 2024, highlighting the industry's resilience. Mark McCrory, Director of Strategy and Advocacy at the International Gas Union, noted that LNG will play a critical role in the future—particularly as a ship alternative fuel, in carbon capture, utilization, and storage (CCUS) initiatives, and in efforts to reduce methane emissions. Meanwhile, the industry is accelerating its strategic shift from conventional high-carbon energy sources toward greener, cleaner, and more sustainable energy solutions.

The debate over the transition path: multi-energy complementarity or a single choice?

In the debate between the energy transition paths of "relying solely on renewable energy" and "comprehensively leveraging diverse energy sources," the conference reached a crucial consensus: a comprehensive approach will help ensure the stability, affordability, and sustainability of energy supplies, while also guaranteeing that the global energy transition progresses smoothly, orderly, and inclusively.

In Li Yalan's view, the global energy transition must prioritize safety above all else. Currently, the world is grappling with challenges such as energy poverty, energy security, and climate change—making a low-carbon energy transition urgently necessary.

Experts attending the meeting generally agreed that, compared to relying solely on renewable energy, a comprehensive approach that integrates natural gas along with other energy sources is more effective in ensuring energy security. In the new global landscape, where the energy revolution intersects with the technological one, natural gas will continue to serve as a critical transitional energy source, working alongside renewables to build a clean, efficient, and sustainable global energy system—a "complementary development" model that paves the way for a brighter future.

Jin Liqun, President of the Asian Infrastructure Investment Bank, emphasized that although global energy is moving toward a "zero-carbon" future, energy security and real-world accessibility remain core challenges for most developing countries. He called for "energy investment and financing to adhere to the principles of cleanliness, fairness, and sustainability, helping green finance truly take root in developing regions, using financial tools to address practical needs and foster inclusive development."

Energy and technology resonate in harmony, paving the way for a new energy system.

Countries around the world are accelerating the implementation of energy transition policies, with carbon capture and storage (CCS) and carbon capture, utilization, and storage (CCUS) technologies rapidly being deployed to reduce emissions.

He Zhongwen, General Manager of the National Pipeline Group, pointed out that the energy revolution and the technological revolution must resonate in harmony. The oil and gas pipeline industry is now facing a dual mission: ensuring safe, green development while simultaneously pursuing intelligent upgrades. Undoubtedly, technological innovation serves as the driving force behind reshaping the industry ecosystem and propelling its sustainable growth.

The large-scale online simulation system for long-distance natural gas pipelines, developed by China National Pipeline Group, has solved the technical challenges that have long constrained China's extensive oil and gas pipeline networks. It also fills a critical gap in domestic industrial pipeline simulation products, ensuring energy data security while maintaining independent control. This groundbreaking technology provides essential core support for smart pipeline infrastructure development and the broader energy transition.

Natural gas not only carries the practical mission of ensuring energy security, but also plays a strategic role in fostering low-carbon technologies. Transformation isn’t a simple either/or choice—it’s a crucial question that demands smart, balanced decision-making. By nurturing new growth opportunities through diversified energy complementarity and breaking through the challenges of transition via open collaboration, we may well have found the key to unlocking effective global energy governance.

Source: China National Petroleum Corporation News Center