Powerful leap: China strengthens its position in the global oil and gas market

According to the latest data from the National Bureau of Statistics of China, the country continues to strengthen its position in the global energy market by actively increasing domestic production of natural resources. From January to July 2024, the volume of natural gas production in the country increased by 6.2%, reaching 143.6 billion cubic meters, underscoring China's commitment to ensuring energy independence. Oil production also showed positive dynamics, rising by 2.1% to 124.96 million tons.

This growth comes against the backdrop of a reduction in oil imports. According to the same source, in the first seven months of 2024, China reduced its oil imports by 2.4% compared to the same period in 2023. The total volume of imported oil amounted to 317.81 million tons, which, despite the decrease in physical volumes, was accompanied by a 2.8% increase in the monetary value of imports, reaching $193.33 billion. Experts attribute this to rising global market prices and the reduction of domestic dependency on external oil supplies, which is part of China’s long-term strategy to strengthen its energy security.

An important element of this strategy is also the increase in oil refining volumes. Despite an overall decline in the oil refining sector by 1.2%, to 419.15 million tons, China is actively investing in the modernization of its refining capacities, which will allow the country to further reduce its need for imported refined oil and related products in the future.

China's coal industry also deserves special attention. During the reporting period, coal production in the country decreased by 0.8%, amounting to 2.66 billion tons. However, this did not prevent China from maintaining high production rates, especially in July 2024, when coal production reached 390 million tons, 2.8% more than in July 2023. The average daily coal production in July was 12.59 million tons, highlighting the country's significant capabilities in this sector.

Despite the decrease in domestic production, China significantly increased coal imports, which grew by 13.3% in January-July 2024, reaching 300 million tons. This indicates a growing demand for coal, which remains an important energy source for the country.

In this context, it is noteworthy that Russian coal supplies to China have significantly increased, exceeding 100 million tons in 2023, more than 50% higher than the previous year. Overall, over the 12 months, China purchased 474.41 million tons of coal from abroad, which is 61.8% more than in 2022. This reflects the growing interdependence between the two countries and the strategic importance of Russia as a key partner for China in ensuring stable energy supplies.

Experts note that the growth of domestic energy production in China and the increase in imports from reliable sources such as Russia indicate Beijing's deliberate and multifaceted policy aimed at strengthening the country’s energy security. In the face of global economic changes and rising energy prices, China continues to be one of the leading players in the global energy market, allowing it to more flexibly respond to external challenges and ensure sustainable economic development.

Thus, China is confidently moving towards the realization of its energy security strategy, relying on the growth of domestic production, modernization of refining capacities, and strengthening international ties in the field of energy imports.

News.Az