China gas and power month in brief: what's the story behind strong demand? Report

Insight 28 April 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

China gas demand grew 9.6% year-on-year in Q1. LNG imports continued to perform well, but there was a decline in volumes imported from Central Asia. Power demand also grew above expectation in March, supported by a revival in heavy industrial activities. To further boost gas demand, China cut industrial end-users’ gas prices in Shanghai and scaled back natural gas VAT rate from 13% to 11%. On the supply side, CNOOC’s Yuedong LNG terminal received its commissioning cargo, though still far from being able to supply gas to the pipeline. Elsewhere the SNEC event in Shanghai shows that China is leading the latest industry trends across the entire solar PV value chain through continuous technological innovation. In contrast to the booming solar power industry, coal power generators continue to face pressure – the Big Five state-run generators reported a 40% of profits drop in 2016 due to the coal price rally since the second half of last year.

Executive summary
Markets
- High gas demand growth signals recent gas boosting policy success
- Soaring power demand in the first quarter but bull run may not last
Policy
- July tax cut designed to boost gas demand
Corporate activity
- Yuedong terminal receives commissioning cargo
- Solar technology continues to improve - costs continue to fall
Smog watch
- Windy spring brought mixed impacts