Green Shift and Digitalization to Accelerate in China’s Oil and Gas Sector
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China's oil and gas industry is entering the 15th Five-Year Plan (2026–30) with a dual objective: safeguarding energy security while accelerating green transformation and digitalization, according to the National Energy Administration (NEA).
Strong Performance in the 14th Five-Year Plan
During the 2021–25 period, the sector recorded:
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Average annual exploration and development investment: 387 billion yuan
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Crude oil output (2025): ~216 million tons
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Natural gas output (2025): 261.9 billion cubic meters
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Nine consecutive years of gas production growth exceeding 10 bcm annually
Infrastructure expansion kept pace:
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Oil and gas pipelines: over 200,000 km
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Gas storage capacity: 54 bcm
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Pipeline transmission capacity: over 400 bcm per year
China also maintained stable annual imports of about 540 million tons of crude oil and 167 bcm of natural gas, supported by four major strategic import channels.
THREE
The NEA said the next phase will emphasize:
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Integration of fossil fuels with renewables and digital technologies
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Expansion of multi-energy hubs at oil and gas fields
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Broader deployment of artificial intelligence in exploration, grid scheduling and supply-demand forecasting
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Continued upstream expansion in major basins to ensure stable crude output
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Optimization of the national gas backbone network
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Exploration of green hydrogen transport through existing pipelines
Low-carbon initiatives already underway include pilot programs using green electricity to enhance oil recovery and the injection of more than 11 million tons of carbon dioxide through carbon capture, utilization and storage (CCUS).
FOUR
For 2026, the NEA will prioritize “AI plus oil and gas” applications, infrastructure connectivity, upstream supply security, and international cooperation with resource-producing nations.
The overall goal is to build a modern oil and gas industrial system that is green, low-carbon, resilient and internationally reliable, providing a stable foundation at the start of the 15th Five-Year Plan period.
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