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China gas and power month in brief: industrial sector drives strong gas demand growth
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
China’s gas and power demand remains unscathed amid the rising US-China trade tensions. Overall gas demand and LNG imports in May grew by 17.8% and 43%, respectively. Such strong growth was driven by the industrial sector, which has picked up the coal-to-gas switching baton from the heating sector. As manufacturing businesses became more profitable, producers also ramped up production and consumed more electricity. But this is not the end of the story. The newly announced ‘blue sky’ action plan could also benefit gas. If the mulled national pipeline company is born, China can improve its pipeline interconnectivity and mobilise all gas resources much more effectively. Gas pricing is another boon. When it becomes more transparent and flexible, major changes in gas cost can be passed through the value chain, paving the way for a fully liberalised gas market.
Table of contents
- Executive summary
-
Markets
- Industrial coal-to-gas switching is supporting demand growth
- Power demand resumes its rally
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Policy
- Shandong enhances gas-pricing mechanism
- Provincial governments follow up on city-gate gas price adjustments
- Tibet rolls out power sector reform
- ‘Blue sky' action plan succeeds APPCAP policy
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Corporate activity
- US-China trade war threatens planned energy investment
- Central Asia-China Line D construction delayed
- China mulls creating national gas pipeline company
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Smog watch
- Another action plan, another round of inspections
Tables and charts
This report includes the following images and tables:
- Monthly gas demand, bcm
- Monthly LNG imports, Mt
- Monthly power demand, Twh
- Beijing AQI
What's included
This report contains:
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