China sharpens focus on energy security as Ukraine war raises supply crunch risk
- Plans for increased domestic oil and gas outputs shed light on Beijing’s eagerness to reduce reliance on foreign fuels
- Chinese fossil fuel imports have fallen sharply since the Russian invasion, which threatens to worsen a looming energy crunch
The war, which has lasted 11 months and shows no sign of an immediate end, has “profoundly” changed the global energy supply landscape, according to Wang Zhen, president of China National Offshore Oil Corporation (CNOOC) think tank the Energy Economics Institute.
A report by the institute predicts a tightening this year in the global oil market, with Russian supplies continuing to be hit by Western sanctions as well as the Opec+ decision to reduce supply.
“The importance that countries attach to energy security has increased significantly [in the wake of the Ukraine war],” Wang told an online energy forum in December when the report was released, according to state-owned Economic Daily.
Also last month, Beijing announced its latest plans to strengthen China’s domestic energy supply by expanding consumption and investment at least until 2035.
Priorities include improving reserves and increasing production of domestic oil and gas, while boosting the exploitation of the resources onshore and offshore, according to a document released by the State Council.
