China plans for peak oil demand amid pipeline increase, intelligent rig development

Beijing’s peak-oil plan pairs an expansion of China’s network of pipelines with 15-km-deep drilling rigs

China has announced a new dedicated five-year plan to drill more crude oil and expand its network of pipelines as the world’s largest importer of fossil fuels faces heightened supply risks from geopolitical tensions.

The plan, unveiled on Monday by the National Development and Reform Commission and the National Energy Administration, called for natural gas storage capacity to exceed 13 per cent of national consumption by 2030.

China also aimed to expand the annual handling capacity of its liquefied natural gas (LNG) terminals to 200 million tonnes and raise its overland pipeline import capacity to 114 billion cubic metres of natural gas every year to 2030.

Under the five-year plan for the oil and gas sector, China was targeting a domestic supply of 440 million tonnes of oil equivalent by 2030, while 20,000 km of new long-distance oil and natural gas pipelines would be added, bringing the national network to 220,000 km – enough to circle the Earth more than five times.

In addition to its overarching five-year plan, China sets sector-specific development plans across a wide range of sectors, outlining the government’s priorities and its targets for industries such as energy, manufacturing, technology and agriculture.