China's gas demand has gained firmer growth prospects. Admittedly, promoting gas becomes more challenging amid severe overcapacity in the coal and power markets, but latest energy policies confirm China's determination to divert away from coal. Gas is seen by policymakers as a realistic choice and an integral part in a cleaner energy structure. In this update, we've further revised up demand in 2020-2030 compared with our H2 2016 outlook, based on expected policy support to gas and improved fuel economics. By 2035, China gas demand will be treble the 2016 levels.