By Matt Becker February 27, 2020 9:55:27China’s oil and gas industry has been busy buying up US oil and natural gas in recent years, according to data obtained by the Center for American Progress.
The Chinese Energy Investment Corporation, or CEIC, has been spending millions of dollars buying up oil and other commodities over the past decade.
The Chinese government’s official news agency Xinhua has said that China has already bought more than $50 billion worth of US crude oil in the past year alone, and the company has also invested in American shale oil and shale gas development.
China is now spending more than twice as much as the US on American natural gas per person.
The US is now China’s second-largest gas exporter after Russia.
The China’s National Energy Administration has been using this data to justify its decision to purchase US oil for a large portion of its domestic energy needs.
The agency’s official press release stated that “China has been importing US crude and natural-gas liquids (LNG) at an unprecedented rate over the last few years, and its purchases of LNG have been driven by its desire to diversify its energy supply.”
The agency further stated that the “economic growth and economic diversification” of China has led it to purchase a “significant portion” of US natural gas as well as US oil, even though these are not the types of commodities China typically imports.
The article goes on to state that “Chinese LNG is now being used to fuel China’s coal-fired power plants, to power domestic demand for gas, and to power its coal-burning coal-liquefied natural gas (CLNG) plants.
As a result, China’s total energy consumption has risen from 7.8 billion tons of Lng in 2008 to 15.7 billion tons in 2017.”
The article goes further to note that “the country is now exporting LNG to countries like India, Indonesia, Malaysia, Australia, and Indonesia as well.”
The report goes on, “China’s LNG exports are growing fast, and in 2017, it exported 663.5 billion cubic meters of LNg, or about 7.6% of global LNG production.”
China’s purchases of oil and LNG are also fueling the development of coal-powered power plants that will be needed to power these coal- burning coal-generated power plants.
The Bureau of Labor Statistics estimates that China will be importing approximately 50% more coal from 2020 to 2030 than it will be using for its coal power plants and will need to increase the amount of coal it produces.
The China Energy Investment Corp. has also begun building the China-based Pohang coal-to-lignite (PLC) plant, which is a $1.6 billion project that will produce 1.3 billion tons per year.
China is also planning to build a new coal- to-lithium-based (CRL) power plant that will consume 1.2 billion tons annually.
The US has also become increasingly dependent on Chinese natural gas for its power needs, even as China has become increasingly reliant on US oil imports for its energy needs and its demand for LNG has increased over the years.
The International Energy Agency estimates that the US will be exporting nearly 20% more natural gas than it uses by 2040.