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China gas and power month in brief: gas reforms keep rolling out while coal faces headwinds

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Report summary

The plummets in power and gas demand in January could be misleading. They are more down to the timing of the Chinese New Year in 2017 compared with last year, than reflections of market fundamentals. LNG imports remained strong in January, growing by 39% year-on-year over a 13% decline in pipeline imports. We expect LNG prices to continue to rise, as evidenced by CNOOC's price uplift in Fujian province, but piloting of gas pricing in Hubei and regulatory reforms in Shandong can help to shore up gas demand. Elsewhere, China took a firm line on coal-fired capacity cuts and warned wind-power investors of growing risks in curtailments across northern provinces. The overcapacity issue is forcing power producers to prepare for financial hardship looming on the horizon. Policing compliance remains the linchpin.

What's included

This report contains

  • Document

    February 2017 dashboard.xls

    XLS 157.50 KB

  • Document

    China gas and power month in brief: gas reforms keep rolling out while coal faces headwinds

    PDF 1.52 MB

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    China gas and power month in brief: gas reforms keep rolling out while coal faces headwinds

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Table of contents

  • Executive summary
    • Weak winter demand continued into January
    • An earlier Chinese New Year distorted power demand growth
    • Shandong releases policy to encourage direct on-site LNG supply
    • Hubei pioneers gas-pricing regulation
    • China takes firm line on coal-fired power capacity cuts
    • Wind curtailment set to remain despite the brake on capacity build
    • Fujian improves CNOOC LNG sales pricing mechanism
    • China power giants prepare for looming financial hardship
    • New inspections, same old findings

Tables and charts

This report includes 6 images and tables including:

Images

  • China gas and power month in brief: gas reforms keep rolling out while coal faces headwinds: Image 1
  • Monthly gas demand
  • Monthly LNG demand
  • Monthly power demand
  • China gas and power month in brief: gas reforms keep rolling out while coal faces headwinds: Image 5
  • Beijing AQI

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