• Considering the massive latent demand potential, China's growing inability to meet its own gas needs is one of the most important developments in any energy market.¹
• China has over 4x the population of the U.S., but consumes just 25% of the natural gas. As regional markets become more integrated, the entire globalizing gas market will quake as China becomes more developed and starts to consume gas like the West.¹
• Gas is China's fastest growing major fuel, with demand quadrupling in the past decade.²
• Gas is now about 6-7% of China's energy demand, double the market share in 2007 (China government seeks gas to be 10% of energy by 2020).²
• Cleaner, more efficient natural gas use is integral to China's 5-year plan (The 13th Five-Year Plan 2016-2020) which calls for the replacement of coal in non-power sectors either with natural gas and/or electricity. This is a very realistic and important evolution in China's energy demand structure because power generation, which is the desired and highest form of coal use, only accounts for 55% of China's coal use, compared to 95% in the U.S. today.²
• China's coal use is eroding air quality and making fuel switching from coal to natural gas more urgent but also easier.²

<sup>1. Sources: EIA; JTC - CO2 Reduction Plans Clearly Favor Natural Gas
2. Forbes - "China's Rising Natural Gas Demand, Pipelines, and LNG" - Source: EIA; JTC</sup>