2021 was a tumultuous year for global energy markets. China, the world’s largest energy consumer, managed to grow its GDP by 8.1%. Energy demand grew faster than expected with initial estimates of 5% growth in final energy demand driven by an impressive 10% growth in electricity usage. While the country increased oil and gas production, it was not immune from the global energy price surge. Domestic coal market tightness and the price rally had a ripple effect on global coal trade and global gas prices. The country has released more details and action plans to peak carbon emissions before 2030 but balancing competing energy goals in the short term is still challenging. As 2022 begins, we look at China’s energy markets and highlight the pertinent trends impacting demand and supply of key energy commodities and the main uncertainties.