China's push to cleaner energy to drive LNG demand
CHINA'S demand for liquefied natural gas has been predicted to increase and for aluminium consumption to increase in the long-term, according to a Reserve Bank of Australia report.
The report looked into China's demand for commodities and found China's push to cleaner energy would increase LNG demand.
"(Industrial LNG use) has prompted efforts to secure large quantities of piped gas... and has led importers to sign long-term LNG contracts with a range of suppliers, including Australia," China's Evolving Demand for Commodities report read.
The imports fell in 2015, reflecting the slowdown of Chinese industrial production and energy demand but "the transition away from heavily polluting fossil fuels may also increase demand for imported natural gas, which produces significantly lower carbon emissions" than coal.
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The report stated that aluminium consumption had grown rapidly in China in the early 2000s and the projected levels of consumption per capita are "not dramatically different from current levels".
The demand for Australia's aluminium in China has not increased with its per capita requirements as China has increased its domestic production.
As a result, the report stated that the peak for aluminium demand would be after mid-to-late 2020s and after the report's scope.
But it stated the aluminium smelting industry in China had been targeted by policy makers for its environmental impacts. This pressure and regulation on smelters was predicted to increase the amount of aluminium imported into the country.