Integrated development of LNG import and new power systems in China

Objective China's LNG import sector is facing challenges arising from low reserve capacities, limited capabilities in balancing market supply and demand, and elevated import costs. Concurrently, the development of new power systems in China confronts the "dual-high" bottleneck, characterized by significant proportions of renewable energy sources and power electronic equipment.Consequently, this bottleneck leads to power supply setbacks, including intermittency, randomness, and a lack of sufficient moments of inertia.

Methods By scrutinizing the existing status of LNG storage infrastructure, the pricing trajectory of LNG import, and the benefits associated with LNG power generation, this paper articulates the viability and imperative nature of setting up LNG strategic reserves. It also illuminates the potential hurdles encountered in the progression of new power systems across three distinct stages, amidst the increasing share of power generation from renewable energy sources. The document emphasizes the crucial contributions of power generation from imported LNG and natural gas in propelling the operation of new power systems.

Results In the initial low penetration stage of the development process of new power systems, imported LNG serves as a clean energy source for power generation, replacing conventional fossil fuels like coal and petroleum. As progress moves to the medium penetration stage, imported LNG finds utility in peak shaving and offering auxiliary services for natural gas pipeline networks and new power systems. In the advanced high penetration stage, imported LNG contributes to supporting the stable operation of new power systems through the provision of essential moments of inertia, standby services, and black start auxiliary services.

Conclusion In alignment with the "carbon peaking and carbon neutrality" objectives, the proportion of power generated from renewable sources is set to rise steadily, eventually assuming a primary role in power production. Natural gas power generation, offering crucial auxiliary services across the developmental stages of new power systems, is acknowledged as a significant component in the construction of these systems. In light of the current global market scenario characterized by a subdued supply and demand for natural gas, it is recommended to establish strategic reserves by importing LNG at competitive prices to foster the integrated development of LNG import and new power systems, ensuring bright prospects for progress.