China gas and power month in brief-November: gas demand remains the bright spot Report

Insight 30 November 2017

Get this report*

$950

You can pay by card or invoice

Share link

First name
Last name
Job Title
Company
Email
Telephone

Country

Message

Consent

Please keep me informed about Wood Mackenzie products, services and events.

Submit Category

For details on how your data is used and stored, see our Privacy Notice.

- FAQs about online orders
- Find out more about subscriptions

*Please note that this report only includes an Excel data file if this is indicated in "What's included" below

Report summary

Gas demand and LNG imports in China continue to astound. Unsurprisingly, the country's massive gas demand has caused supply shortages well before the heating season started. The continued gas market bright spot through 2017 and concerns over long-term supplies have helped a Chinese consortium sign three natural gas MOUs during President Trump’s first visit to China. On the power side, demand is at a seasonal low but clean energy keeps expanding in the generation mix. Following the Shenhua-Guodian merger, the NDRC is trying to accelerate the integration of coal and power industries to better manage market risks. We expect to see more reform initiatives along the way, including a ramp down of feed-in tariffs for solar and wind, possible changes from the feed-in tariff system to an auction system, and tackling cross-subsidisation issues in residential and industrial power prices. It could take time for all of this to happen.

Executive summary
Market
- Supply shortage reported as soon as heating season started
- Power demand at a seasonal low but renewables keep expanding rapidly
Policy
- Jiangsu announces official intraprovincial gas tariff regulation
- NDRC to accelerate the integration of coal and power industries
- China maps out pricing reform blueprint for gas and power
Corporate
- Three natural gas MOUs signed during Trump’s first visit to China
- CNOOC gets go-ahead from NDRC for Zhangzhou LNG terminal
Smog watch
- Will blue skies be sustained into the heating season?
- A colder start to Beijing's winter