China will face a shortfall of 7.3 million tonnes in liquefied petroleum gas (LPG) supply by 2010 due to surging demand. LPG is used mainly as auto fuel and cooking fuel.
Domestic demand of LPG will be around 26.2 million tonnes in 2010, while supply is expected to be only 18.9 million tonnes. Consumption of LPG will gradually slow in the next decade, because of the emerging liquefied natural gas market.
China’s roaring economic growth has drastically increased its thirst for new energy, with demand for petroleum and electricity rising especially steeply.
China has been keen to China may solve the shortfall by exploring resources overseas in areas such as in Africa and South America.