Insight
China gas and power month in brief: energy reforms gather momentum
Report summary
Change was in the air in May with several key energy reform initiatives being introduced. China is removing cross-subsidisation in gas prices by raising residential rates to be on par with non-residential prices. It is also looking to rationalise development of gas storage facilities to improve peak-shaving capabilities. As an integrated part of the drive to improve environmental quality, coal-fired power buildout will be kept under closer scrutiny. And to support sustainable growth of renewables, the government is switching wind power pricing from a feed-in tariff system to auctions. These initiatives will pave the way for a future of cleaner energy, though some of them could create uncertainties in the short term.
Table of contents
- Executive summary
-
Markets
- NOCs manage summer demand to prevent gas shortages
- Power demand growth regains momentum
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Policy
- NDRC merges residential and non-residential city-gate gas prices
- and calls for orderly development of gas storage facilities
- Wind power pricing transitions to auctions
- Coal-fired power buildout kept under close scrutiny
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Corporate activity
- NOCs opt for short-term deals and destination flexibility
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Smog watch
- May AQI remains disappointing
Tables and charts
This report includes 4 images and tables including:
- Monthly gas demand, bcm
- Monthly LNG imports, Mt
- Monthly power demand, Twh
- Beijing AQI
What's included
This report contains:
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