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China gas and power month in brief

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09 August 2019

China gas and power month in brief

Report summary

China's transport and power sectors are providing some support to gas demand. Enforcement of new emission standards has led to a surge in sales of LNG-fuelled heavy-duty trucks, and the economics of gas relative to oil has improved. Meanwhile, summer cooling demand has benefited gas power generation. However, the two sectors cannot reverse the trend of deceleration in overall gas demand, as they only account for less than 30% of total gas demand. Despite the slowdown in demand, the Chinese gas market remains dynamic and exciting in many aspects. Interest in LNG imports via ISO containers has re-emerged amid low global spot LNG prices, PetroChina continues its foray into downstream business, and ENN is finally able to truck LNG from its island terminal to the mainland.

Table of contents

  • Executive summary: summer slowdown, yet market keeps evolving
    • Multiple factors slowing gas and LNG growth in 2019
    • China’s power demand growth faces more downward pressure
    • China drafts detailed measures for disclosing oil and gas infrastructure information
    • New unconventional subsidy budget set at RMB5.1 billion
    • Top Speed Energy will expand LNG imports via ISO containers
    • ENN’s terminal gains eight-month permit to truck LNG via Zhoushan bridge
    • PetroChina’s Kunlun Energy farms in more local distribution business
    • Landbridge teams up with Beijing Energy to build Rizhao LNG terminal
    • Gas injection at Sinopec’s Wen 23 storage facility progresses ahead of schedule
    • Guangzhou Gas-led group receives first cargo via third-party access at Dapeng
  • Smog Watch
  • Executive summary:economic slowdown weighs heavier on demand
    • Gas demand weakens further
    • US-China trade issues begin to impact power demand
    • China extends unconventional gas subsidy to 2023 and includes tight gas
    • China eases restrictions on foreign investment in oil and gas
    • Policymaker requires greater disclosure of pipeline information and aims for energy content-based pricing for natural gas
    • Hong Kong offshore LNG terminal locks in supply and FSRU chartering
    • CNOOC sells first two mid-term deals for third-party access to its terminals
  • Smog Watch
  • Executive summary:reforms gain momentum
    • Gas demand holding double-digit growth but summer spot LNG needs remain low
    • Power demand faces downward pressure
    • Renewable portfolio standard released, finally
    • China raises US LNG import tariffs to 25%
    • PetroChina increases summer gas prices as the government’s midstream reform gains momentum
    • Zhejiang Energy plans second terminal in Zhoushan
    • Yudean imports first cargo via third-party access at Dapeng terminal
  • Smog Watch
  • Executive summary:market chills but buyers remain active
    • Swings in industrial demand key to total power demand growth
    • Zhejiang unifies sales gas price for the non-heating season
    • Could a 20-25% reduction in feed-in tariff disrupt solar PV power industry?
    • Sinopec’s Wen 23 underground storage connected to main gas grid
    • CNOOC and CNPC to buy 20% stake in Arctic LNG 2
    • Zhejiang Energy signs 20-year, 1-mmtpa SPA with ExxonMobil
    • BP to exit Sichuan shale
  • Smog watch
  • Executive summary:demand faces tough start to the year
    • LNG imports growth slows in February, demand response to low Asia spot price limited so far
    • Power demand growth decelerates in the first two months
    • China lowers value-added tax rate on natural gas
    • US-China trade dispute still holding back LNG trade
    • Is China’s nuclear power construction about to speed up?
    • China offers to cut power prices by 10% in 2019
    • CNOOC offers more third-party access to its terminals, with challenging terms
    • Yudean seeks to take advantage of low spot prices
    • PNG LNG signs four-year SPA with Sinopec
    • Total signs 10-year SPA with Guanghui
    • Woodside signs 10-year HoA with ENN
    • National oil and gas pipeline company unbundling transportation and sales is in sight
  • Smog watch
  • Executive summary: more LNG terminals planned by 2035
    • LNG imports hit record high in January
    • Industry remains biggest driver of power demand despite its declining share
    • China plans coastal and riverside LNG terminals rollout to 2035
    • Offshore wind auction mechanism will have limited impact to reduce power price
    • Subsidy-free wind and solar policy sets the tone for future growth
    • Qidong terminal to reach 3 mmtpa as pipeline to Nantong starts construction
    • PetroChina accelerates underground storage construction
    • CNOOC signs 13-year SPA with Mozambique LNG
    • Shale gas drilling suspended after three earthquakes in two days
    • Air quality improves in February, but festive fireworks almost spoil the party
    • October 2018: Moderate demand reduces winter gas shortage threat
    • September 2018: Chinese buyers to shape global LNG trends
    • August2018: Can summer storage stop winter shortage?
    • July 2018: China remains hungry for gas
    • June 2018: Industrial sector drives strong gas demand growth
    • May 2018: Energy reforms gather momentum
    • April 2018: Demand growth meets seasonal slowdown
    • March 2018: LNG and power markets remained hot
    • February 2018: LNG imports hit new record
    • January 2018: Record-high LNG imports ending country's over-contracted position

Tables and charts

This report includes 39 images and tables including:

  • Beijing AQI
  • Beijing AQI
  • Beijing AQI
  • Monthly gas demand, bcm
  • Monthly LNG imports, Mt
  • Monthly power demand, Twh
  • Beijing AQI
  • Monthly gas demand, bcm
  • Monthly LNG imports, Mt
  • Beijing AQI
  • Monthly gas demand, bcm
  • Monthly LNG imports, Mt
  • Beijing AQI
  • Monthly gas demand, bcm
  • Monthly LNG imports, Mt
  • Monthly power demand, TWh
  • Terminals proposed in Rizhao and Yantai, Shandong
  • Monthly gas demand, bcm
  • Monthly LNG imports, Mt
  • Monthly power demand, TWh
  • Monthly gas demand, bcm
  • Monthly LNG imports, Mt
  • Monthly power demand, TWh
  • 2020 renewable RPS* targets
  • 2020 non-hydro RPS targets
  • US LNG imports vs China's total LNG imports
  • Summer 2019 price scheme for wholesale gas at provincial city gate
  • Zhejiang Gas sales price
  • Monthly power demand, Twh
  • City-gate prices benchmark set by the NDRC (RMB)
  • City-gate prices benchmark set by the NDRC (USD)
  • Third-party access offered by CNOOC
  • Monthly power demand, Twh
  • Power demand growth rate by sector

What's included

This report contains:

  • Document

    China gas and power month in brief

    ZIP 6.50 MB

  • Document

    China gas and power month in brief: more LNG terminals planned by 2035

    ZIP 3.93 MB

  • Document

    Regas tracker.zip

    ZIP 4.42 MB

  • Document

    Dashboard_July_2019.xlsx

    XLSX 115.24 KB

  • Document

    LNG imports tracker_July_2019.xlsx

    XLSX 211.64 KB

  • Document

    Trucked LNG tracker_July_2019.xlsx

    XLSX 154.14 KB

  • Document

    Prices tracker_July_2019.xlsx

    XLSX 262.03 KB

  • Document

    Regas tracker_July_2019.xlsx

    XLSX 1.52 MB

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