Cheaper coal hinders China's attempt to raise natural gas use

Shanghai

CHINA'S effort to promote natural gas over coal to cut pollution is facing resistance from buyers who prefer cheaper to cleaner.

The world's largest energy consumer seeks to raise the share of less-polluting natural gas to 10 per cent of its energy mix by 2020 from 6 per cent last year. Yet even with the government cutting the cost of gas, it remains almost three times more expensive than coal when used to generate electricity. That's putting a damper on the switch from a fuel that now accounts for more than 60 per cent of demand.