Driven by coal to gas switching in the industry sector China s gas demand performed strongly in May. Overall demand was up by 18.5% and LNG imports more than doubled. The NOCs ramped up contractual LNG volumes and became more active in the spot market. Midstream reform in the gas value chain gathers momentum with a tighter city gas distribution margin control we expect to see more demand upside to be unlocked. The new Qidong terminal had a difficult commissioning which may undermine Guanghai's credibility as an emerging LNG player. On the power side demand continues to decelerate dragged down by energy intensive industries. The NDRC announced to elevate on grid tariffs to ease coal generators sustained financial hardship. Clean energy hit a new provincial record in Qinghai a landlocked inland province. Local demand was met purely from renewables for 168 hours.