CHINA’S ENERGY CRISIS
Northern China is facing an energy crisis this winter due to shortfalls in heating gas. Many schools have not had heating since November 15—though the average temperature during the day has been close to, or below freezing. These schools were required to remove coal-fired heating ahead of the winter season as part of a larger initiative to reduce smog and CO2 emissions.
As the world’s top consumer and producer of coal, this is no easy task. In fact, China consumes four times as much coal as all of Europe (including Russia) and Central Asia combined.
By contrast, Chinese consumption of natural gas in 2016 was eight times its level in 2000. However, the attempts to smoothly transition from coal to gas appears to have failed and are the root cause of the current gas shortfall. Across China, the price of liquefied natural gas (LNG) has risen by 300 percent. This is having significant downstream effects and has led to rationing.
The effects of the shortages are spreading. This is because the shortages and accompanying spike in prices are manifestations of a larger problem.















