China has relied on imported crude oil and natural gas for many years, making energy security a central priority under the country’s 15th Five-Year Plan (2026–2030). At the same time, domestic energy production is growing steadily, driven by increased investment in exploration and production (E&P). Coal accounts for 51.4% of China’s primary energy mix, although the share of renewable energy and natural gas continues to increase.
Energy market in China
Chinese energy transition: by the numbers
2030/2060
President Xi has set the goal of achieving peak carbon emissions before 2030 and carbon neutrality by 2060.
3890 gigawatts (GW)
By 2025, China’s total installed power generation capacity reached approximately 3,890 GW, with:
- 1,540 GW of coal power
- 450 GW of hydropower
- 640 GW of wind power
- 1,200 GW of solar power
- 62 GW of nuclear power
30.4% renewable
Renewable energy now accounts for 30.4% of China’s energy mix, while natural gas represents 9%.
145 gigawatts
By 2025, China’s installed new energy storage capacity reached approximately 145 GW, including 66.4 GW of newly added advanced (new‑type) energy storage capacity in 2025 alone.
762 million tons
In 2023, China’s crude oil consumption reached approximately 762 million tonnes, with imports accounting for 72.7% of total demand. Natural gas consumption totalled 432 billion cubic metres (bcm), with an import dependency of around 40%.
2.22 trillion RMB
Since 2022, the annual revenue of China’s environmental protection industry has consistently exceeded 2 trillion RMB (approximately 400 million CAD), reflecting the sector’s steady growth.
Key opportunities for Canadian energy companies in China
Energy products: Canadian energy exports to China—including crude oil, liquified natural gas (LNG), and liquified petroleum gas (LPG) experienced significant growth in 2025. However, substantial opportunities for further expansion remain.
Shale and unconventional reservoirs: Local players are seeking foreign solutions in the following areas:
- experience and expertise related to horizontal drilling and ultra-deep wells
- fracking technology
- high sealing performance and corrosion resistance for high hydrogen sulfide gas, and chemistry additives
Hydrogen fuel cell (HFC) technology: Chinese private and public companies actively source foreign expertise in:
- low-carbon hydrogen production
- distribution (road or pipeline)
- storage
- end-use applications such as fuel-cell vehicle (FCV) technology
Carbon capture, utilization and storage (CCUS): CCUS will be critical for China’s carbon-neutrality goals. There is growing interest among Chinese companies in Canada in this field, especially related to technological cooperation and investment opportunities.
Renewable energy and energy storage: China’s renewable energy sector continues to expand at scale, creating substantial business opportunities for Canadian companies.
Air, environment, and remediation: China has an ongoing need for technology and services related to pollution prevention, treatment, and remediation. This demand is driven by increasingly strict domestic policies.
Waste-to-energy (WTE): China’s industrial base has significant requirements for technologies converting waste into usable energy forms, including heat, fuels, and electricity.
Notable challenges for Canadian energy companies in China
Competitive landscape: Challenges include domestic procurement preferences, large-scale demand, cost competitiveness, cultural and language barriers, and geographic distance from Canada. Success requires long-term strategies and trusted local partnerships.
Intellectual property (IP) risks: Because energy is an IP-intensive sector, Canadian companies must develop plans for IP-related risks and implement robust risk mitigation strategies.
Brand awareness: While Canadian firms are recognized global leaders in niche technologies, Canada is not always recognized as a such in China.
Notable projects and events
- The 7th Canada China LNG Forum and Roadshow, Yantai/Shandong, June 2026
- China International Environmental Protection Exhibition (CIEPEC), Beijing, June 2026
- Beijing Energy Congress, Beijing, January 2027
- Interregional Petroleum and Natural Gas Enterprises Conference, Zhoushan, October 2026
- The Cleantech in Oil and Gas Seminar, Tianjin, March 2027
- China International Petroleum and Petrochemical Technology and Equipment Exhibition (CIPPE), Beijing, March 2027
Summary
China’s 15th Five-Year Plan (2026–2030) sets a clear direction to accelerate the green transition, curb emissions, and reduce carbon intensity. It focuses on improving energy efficiency and deploying low-carbon technologies, while maintaining energy security. These priorities present significant opportunities for Canadian companies, especially those offering products and services that can support local industries in achieving these objectives.
Contact us
For more information on energy sector in the Chinese market please contact infocentrechina@international.gc.ca.
