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In 2016, China's expected consumption of natural gas is 205 billion cubic meters, an increase of 7.3% on the previous year.

A report released by the China Economic and Technical Research Institute of CNPC says that lower prices and tighter environmental regulations will boost the demand for natural gas. But the overall supply still exceeds demand.

It is estimated that in 2016, natural gas will make up 6.4 percent of primary energy consumption. Of that, urban gas consumption will be 82.7 billion cubic meters, with an increase of 9.1%; gas consumption for electricity generation will be about 31.9 billion cubic meters, up 8.7%; gas consumption for industrial fuel is expected to be 61.1 billion cubic meters, up 6.1%; gas consumption for chemical use will be 29.3 billion cubic meters, up 3.7%.　

The report also says that China's natural gas supply will undergo steady growth and reach 208 billion cubic meters this year. The supply of natural gas produced in China will reach 139 billion cubic meters. Cheaper natural gas will reduce the production of coal-bed methane, shale gas and coal gas.

The annual imported natural gas is expected to reach 69 billion cubic meters this year, including 1.6 million tons (about 30 billion cubic meters) of liquefied natural gas (LNG).