IEA: China's Rapid Shift to LNG Trucks Signals Peak Fossil Fuel Demand by 2030

Oct 16, 2024, 04:09 AM

China's rapid shift from diesel to liquefied natural gas (LNG) in heavy-duty trucks is accelerating a decline in oil demand, surprising industry analysts with its speed. LNG heavy-truck sales are growing rapidly, contributing significantly to this trend. According to Sun Yang of OilChem, "Diesel demand peaked earlier than we expected. The speed at which LNG has replaced diesel in heavy-duty trucks has been very fast." The International Energy Agency (IEA) notes that "Slowing economic activity and increasing adoption of electric vehicles, biofuels, and LNG use in trucking is steadily reducing petroleum fuel consumption." This transition is contributing to a slowdown in China's overall oil consumption as the country increases its adoption of electric vehicles and solar energy. The IEA reports that fossil fuel demand is expected to peak by the end of the decade, ushering in a new "Age of Electricity." China's advancements highlight a significant shift that could influence global energy dynamics.