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China’s natural gas surge faces hurdles

Rising incomes, rapid urbanisation and concerns over the toxic smog that enshrouds many of its cities are driving China away from coal and oil and towards natural gas.

Gas usage has risen almost sevenfold in 13 years to 168bn cubic metres, and China has become the largest consumer after the US and Russia.

Further increases are expected. The power, industrial and transport sectors are forecast to drive demand to 315bcm by 2019, according to the International Energy Agency, the wealthy nations’ energy watchdog, and Beijing has set its sights even higher.

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