Insight
China gas and power month in brief-September: heading into a tight winter market
*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 demand and LNG imports surged dramatically in August. As the weather gets colder and new demand emerges from fuel switching, the natural gas market is going to be tighter in Q4. It is likely that fewer TPA schedules will be left for emerging LNG buyers as the market has already seen high auctioned gas prices and busier terminals are expected during the winter. Power demand has started to lose momentum after experiencing a record high in July. This is mainly because of production cuts in heavy industries under a tighter environmental policy in preparation for the 19th National Congress taking place in Beijing in October. Fuel switching could restore some of the momentum given household electricity for heating is becoming more affordable.
Table of contents
- Executive summary
-
Market
- Strong demand growth could herald winter supply tightness
- Power demand faces more downside pressure
-
Policy
- Provincial authorities explore intraprovincial pipeline tariff-setting mechanisms
- Lower tax and fee burden on renewables set to improve generation economics
- Pricing signals to kick-start coal-to-electricity switching in households
-
Corporate
- CNPC auctions piped gas via Shanghai Petroleum and Natural Gas Exchange (SHPGX)
- China Gas to support continuing coal-to-gas switching efforts in Shandong
- SPIC may divest its aluminium business to Chalco
- Smog watch
Tables and charts
This report includes the following images and tables:
- Monthly gas demand, bcm
- Monthly LNG imports, Mt
- Beijing AQI
- Monthly power demand, Twh
What's included
This report contains:
Other reports you may be interested in
Insight
China gas and power month in brief October 2017: gas demand surge continues
Strong gas demand growth continued in September with a 25% year-on-year increase.
$950
Insight
Bright outlook despite short-term turbulence: China gas and power month in brief January 2017
2016 ended weaker-than-expected for China's gas and power demand as a result of mild weather.
$950
Insight
China gas and power month in brief: October 2016
Overall gas demand picked up by a mild 11% while LNG imports in September nearly doubled the volume last year.
$950
