China expands energy infrastructure to bolster security and reach peak oil demand

China is implementing strategic measures to bolster energy security and manage its transition toward peak oil demand. According to a new five-year plan from the National Development and Reform Commission and the National Energy Administration, the country aims to reach peak oil consumption while expanding its energy infrastructure. The plan targets a domestic supply of 440 million tonnes of oil equivalent by 2030 and the addition of 20,000 km of new long-distance oil and natural gas pipelines.

To mitigate geopolitical risks, such as disruptions in the Strait of Hormuz, China also intends to increase its natural gas storage capacity to exceed 13 per cent of national consumption by 2030. Other targets include expanding annual liquefied natural gas (LNG) terminal handling capacity to 200 million tonnes and raising overland pipeline import capacity to 114 billion cubic metres annually.

In terms of immediate inventory trends, estimates suggest China added approximately 200,000 barrels per day of crude oil to its reserves in July. This follows a rebound in imports after a decade-low in June. Despite the ongoing Middle East crisis, China’s massive crude oil stockpile has remained largely intact at approximately 1.2 billion barrels.