China gas and power month in brief: balancing acts are increasingly difficult
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Report summary
China maintained a strong appetite for both LNG and electricity. We saw LNG imports grow by 33% year-on-year in February, driven largely by the ramp up in contracted volumes and by a 10% year-on-year drop in Central Asian pipeline imports. Heavy industries are doing great, pushing up overall power demand growth to 6.3%. This momentum can be maintained for a while, and we expect to see more power demand could be created when more coal is displaced by electricity in the ‘2+26’ cities, while gas’ upside is relatively limited. Companies are warming up as spring comes. CNOOC has allied with JERA and KOGAS for flexible LNG contract terms, and Guanghui has tendered for five cargoes to be delivered between May and December. Two of China’s nuclear power giants are also discussing a possible merger.
What's included
This report contains
Table of contents
- Executive summary
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Markets
- Ramp up in contracted volumes continues to drive LNG imports
- Industrial recovery drives up power demand growth, but challenges remain
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Policy
- Something has to give: renewables or nuclear?
- Electricity may win over gas when ‘2+26’ cities phase out coal
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Corporate activity
- The pendulum has swung back: coal generators are once again disadvantaged
- Guanghui tenders for five cargoes to be delivered between May and December 2017
- CNOOC allies with JERA and KOGAS for flexible LNG contract terms
- Birth of a nuclear Titan: CNNC and CNEC plan for a merger
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Smog watch
- ‘Two Sessions blue’ makes a brief appearance
Tables and charts
This report includes 7 images and tables including:
Images
- China gas and power month in brief: balancing acts are increasingly difficult: Image 1
- Monthly gas demand
- Monthly LNG demand
- Monthly power demand
- China gas and power month in brief: balancing acts are increasingly difficult: Image 5
- China gas and power month in brief: balancing acts are increasingly difficult: Image 6
- Beijing AQI
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