China set to overtake Japan as world's biggest natural gas importer

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Beijing's crackdown on pollution has put China on track to overtake Japan this year as the world's biggest importer of natural gas, used to replace dirtier coal.

China - already the biggest importer of oil and coal - is the world's third-biggest user of natural gas behind the United States and Russia, but has to import around 40 per cent of its total needs as domestic production can't keep up with demand.

Data compiled from the Thomson Reuters Eikon terminal indicates China's 2017 imports of pipeline gas and liquefied natural gas (LNG) will top 67 million tonnes, up by more than a quarter from a year earlier. LNG imports alone surged more than 50 percent.

The data, which includes LNG tanker arrivals to China and pipeline monthly import flow estimates, is preliminary as December figures are not yet available.

China still lags Japan, with gas annual imports of around 83.5 million tonnes, all as LNG, but its overall gas imports topped Japan's in September and again in November, government data and shipping flows show.

Analysts say the trend is set and China should top Japan for the full year in 2018.

"Both LNG and pipeline imports will continue to increase in the next few years. We expect China to overtake Japan as the world's largest gas importer in 2018," said Miaoru Huang, Asia gas and LNG senior manager at energy consultancy Wood Mackenzie.
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