China’s Ministry of Ecology and Environment has proposed to replace heating coal in 7.09 million households in northern regions with clean energy in a move that could boost natural gas consumption and LNG imports. The switch is proposed under a draft on plans to tackle air pollution in the country’s northern provinces, including Beijing, Tianjin, Shandong, Hebei, Shanxi, Shaanxi, and Henan.
It has been sent to the National Energy Bureau, the National Development and Reform Commission, provincial governments, and state energy companies, asking for feedback with a September 30 deadline. Under the proposal, heating systems in those provinces are expected to use cleaner fuels such as clean coal, electricity, and natural gas, depending on each region’s actual situation.
A similar move in 2017 resulted in 4.74 million households replacing coal with gas or electricity. The move is expected to boost natural gas demand from residential customers and help to increase China’s LNG imports. However, it will likely depend on the weather as the latest proposal highlights the importance of local fuel supply. Colder winter means households burn more fuel that may lead to a combined use of coal and gas as heating fuels.
