China is the sixth largest natural gas producer in the world, with its production almost tripling over the course of 2005-2014 (see Figure 1 ). Issues for Congress

China's natural gas plans have implications for a number of issues in which Congress has expressed a strong interest. Those issues include the following:
The prospects for U.S. energy exports, including exports of natural gas and coal ; Prospects for U.S. energy companies' investments in China; Chinese investment in the U.S. energy sector; Manufacturing competitiveness between the United States and China; China's ability to meet its global commitments to reduce greenhouse gas emissions in order to combat climate change; China's ability to reduce the severe air pollution that hangs over parts of the country, and thus reduce the airborne pollutants that have been shown to travel from China to the west coast of the United States; China's political and economic relationships with such regions as Central Asia, a major supplier of natural gas to China via pipelines, and the Middle East, currently a major supplier of oil and LNG to China; China's plans for disputed waters in the South China Sea, which may contain significant hydrocarbon resources; and China's management of its energy-rich but troubled Xinjiang region, which has a large ethnic Turkic population and has been the subject of human rights concerns from governments and groups outside China, and of Chinese government concerns about separatism, terrorism, and religious extremism. In the 114 th Congress, Members have expressed interest in Chinese policy related to natural gas in hearings, such as the Senate Committee on Energy and Natural Resources' January 2015 hearing on S. 33 , The LNG Permitting Certainty and Transparency Act, and the same committee's February 2015 hearing on The Fiscal Year 2016 Budget Request for the U.S. Department of Energy. China National Petroleum Corporation (CNPC) and China Petrochemical Corporation (Sinopec) are the biggest of the three. Supply: Importance of Diversity

China has made significant strides in diversifying its natural gas supplies. Domestic production has risen 164% in the last ten years, to 135 BCM in 2014. Natural gas imports, which did not begin until 2006, have grown from one BCM to over 58 BCM in 2014. However, China's slowing economy may be a short-term event. Consumption: A Case of Mixed Messages

Growth in China's demand for natural gas has slowed in recent years. State media reported that annual consumption in 2015 was 191 BCM, up 3.7% from 2014. This represented the lowest rate of annual growth in a decade (see Figure 8 ). China's government expects its overall energy consumption to grow in 2016, with natural gas rising to 6.2% of primary energy needs. Part of the slowdown in consumption growth is attributed to the sluggish economy. In November 2015, China cut natural gas prices to spur demand.
China could potentially be a much larger producer and consumer of natural gas than it is now. Despite China's pollution problems and international environmental commitments, the role of natural gas in China's energy mix remains relatively low, particularly compared to the United States. China has announced big plans for its natural gas development and use, but the changes will require significant investment in exploration, production, infrastructure, and consumption. With a slowing economy, China may not be in a position in the short-term to undertake these investments.
China's natural gas plans have implications for a number of issues in which Congress has expressed a strong interest. Those issues include the prospects for U.S. hydrocarbon exports to China, prospects for U.S. energy companies' investments in China, Chinese investment in the U.S. energy sector, China's ability to meet its global commitments to reduce greenhouse gas emissions in order to combat climate change, and China's plans for disputed waters in the South China Sea, which may contain hydrocarbon resources, among other topics.
In the 114th Congress, Members have expressed interest in Chinese policy related to natural gas in hearings, such as the Senate Committee on Energy and Natural Resources' January 2015 hearing on S. 33, The LNG Permitting Certainty and Transparency Act, and the same committee's February 2015 hearing on The Fiscal Year 2016 Budget Request for the U.S. Department of Energy.
China's energy sector, including its natural gas industry, is controlled by the government via the National Development and Reform Commission's National Energy Administration and other regulatory and planning bodies. There are three main national energy companies—China National Petroleum Corporation (CNPC), China Petrochemical Corporation (Sinopec), and China National Offshore Oil Company (CNOOC). The first two are among the world's largest energy companies. These companies are the primary actors domestically and internationally.
China has made significant strides in diversifying its natural gas supplies. Domestic production rose 164% from 2004 to 2014, to 135 billion cubic meters (BCM). Natural gas imports, which did not begin until 2006, grew from one BCM that year to over 58 BCM in 2014. With its imports split almost evenly between pipeline and liquefied natural gas (LNG), China is the fourth largest natural gas importer in the world, with Turkmenistan supplying just under half of its imports.
Growth in China's demand for natural gas has slowed in recent years. State media reported that annual consumption in 2015 was 191 BCM, up 3.7% from 2014. This represented the lowest rate of annual growth in a decade. China's government expects its overall energy consumption to grow in 2016, and for natural gas to rise to 6.2% of primary energy needs, from 6% in 2014. Part of the slowdown in consumption growth is attributed to the slowing economy. In November 2015, China cut natural gas prices to spur demand.