China gas and power month in brief: winter gas market looking more balanced Report

Insight 29 November 2018

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

Report summary

As we entered the winter heating season in November, more evidence emerged to support our view that moderate gas demand will reduce the threat of winter gas shortages. Mild temperatures, higher gas prices for power generation and industrial users, and the restarting of coal-fired emergency backup units all point to a demand profile that could fall short of previous expectations. China has mobilised all gas sources to balance the market. Central Asian pipeline imports stay high. Tanks and underground storage are fully loaded. And more connecting pipelines have been commissioned to improve gas grid interconnectivity, allowing more flexible gas flows through various sources to feed demand centres. This winter gas market looks more balanced.

Executive summary
Markets
- Moderated demand and raised supply will better balance gas market this winter
- Strong power demand and slowing capacity buildout improve utilisation
Policy
- Beijing restarts mothballed coal-fired units to ease gas supply tightness
- Non-residential gas prices to rise during winter heating season
- Third draft of renewable portfolio standard implies major backlash
Corporate activity
- FSRU Höegh Esperanza adds 170,000m 3 storage capacity to CNOOC Tianjin terminal
- ENN acquires Toshiba's US LNG business
- Sinopec Ordos-Anping-Cangzhou pipeline Phase 1 commissions
- CNOOC signs mid-term contract with Petronas
- Panzhihua receives gas from Myanmar via CNPC Chu-Pan pipeline
- SOE reform fuels Huadian-Datang merger proposal
Smog Watch
- Three waves of smoggy days hit Beijing

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:

Dashboard_November 2018.xlsx

XLSX 109.53 KB
Infrastructure tracker_November 2018.xlsx

XLSX 328.14 KB
Prices tracker_November 2018.xlsx

XLSX 259.66 KB
China gas and power month in brief: winter gas market looking more balanced

PDF 3.39 MB