China’s gas and LNG demand remained impressive in June. Gas demand went up by 28% year-on-year and LNG imports grew by 38%. Such strong growth is primarily due to industrial users switching from coal to gas. Meanwhile, the government has announced more supporting policies to nurture and spur gas demand, enhance pipeline interconnectivity and cut pipeline transmission and distribution tariffs. Companies are responding to this positive change. Emerging players such as Huadian and Guanghui are co-operating to import low-cost LNG through third-party access to harness the demand take-off. Gazprom also aims to supply gas to China by commissioning the Power of Siberia pipeline by the end of 2019. As the gas sector reform gathers momentum, the power transmission reform is also setting the stage for future power price reductions. China’s solar power capacity looks set to beat its 2020 target three years early, showing the transition to clean energy is only getting faster.