“China should import more energy, that's the picture for oil and gas – energy diversification is a priority for China,” China's National Development and Reform Commission director of energy economics and development strategy Gao Shixian told the London conference.

Bloomberg reports Gao as saying that China, the world’s second largest oil consumer after the US, presently relies on coal for two-thirds of its energy. But by 2010, oil will account for about 52% of China's energy needs, up from 29.1% in 2000.

China's net imports of oil last year were over 100 million tonnes, about half of which came from the Middle East. Net imports are scheduled to rise to between 180-200 million tonnes of oil a year by 2010.

China's natural gas consumption is rising at an even faster pace and the country is projected to have net gas imports of between 200-250 bcf by 2010, up from zero imports in 2000.

Gas would account for 20% of the country’s energy needs by 2010, as the percentage share of coal declined. The country might import more LNG, as industrial demand grew, Gao said.

But China's energy demand growth was unlikely to be as high in 2005 as in 2004, Deutsche Bank AG global oil strategist Adam Sieminski told the conference.