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October 15, 2025
The share of natural gas in China’s power generation sector remains low, while coal still accounts for more than 55%. Although the development of renewable energy in the coming decades may slow the growth of fossil fuel consumption and help reduce the use of coal, it is unlikely to impact the increase in natural gas demand. A large-scale transition to electric vehicles in China will raise electricity demand; China is also actively converting freight transport to natural gas, partly to avoid increasing its dependence on imported oil. Figure 1 shows China’s power generation mix by fuel type through 2024, showing that coal and growing renewable generation, and nuclear, make up the majority of the power generation mix while natural gas remains relatively small.