Diversification, innovation key to energy security

Possible shutdown of key Middle East waterway spurring contingency action

China's long-term energy security strategy is robust enough to withstand even extreme scenarios, such as the potential shutdown of the vital Strait of Hormuz, said industry experts and company executives.

Disruptions caused by geopolitical uncertainties are unlikely to fundamentally impact energy shipments to China, the world's largest energy consumer, which has been diversifying its energy import channels while developing clean energy on a large scale, said Lu Ruquan, president of the China National Petroleum Corp Economics and Technology Research Institute.

This confidence stems from a multipronged approach, including strategic reserves and diversified supply routes, said Lu during the Shanghai Cooperation Organization Energy Ministers Meeting held in Ningbo, Zhejiang province, in June.