Bright outlook despite short-term turbulence: China gas and power month in brief January 2017
2016 ended weaker-than-expected for China's gas and power demand as a result of mild weather. Overall gas demand in 2016 picked up by 6.6%, but LNG imports soared by over 70% in December, thanks to more cargo deliveries and the decline of Central Asian imports. Power demand was up by 5% in 2016, pretty good growth given the flat 2015. The warm market is adding to the festive mood as we enter the Year of the Rooster, as is the move to reposition natural gas as one of the main sources to clean China’s energy mix. This will unlock huge investment opportunities. Elsewhere, we see further progress on capacity rationalisation of China's coal-fired power projects, and a green electricity certificates scheme was announced to better support renewables.