2018 saw China build on the coal-to-gas switching momentum of 2017 and it continued to increase gas demand at a fast pace. Gas demand grew by 17% year-on-year, or up by 41 bcm. China managed to avoid gas shortages in winter 2018/19. However, China’s gas demand has faced multiple headwinds in 2019. Current policies lean towards preventing a deeper slowdown of the economy while the pace of gas demand creation has moderated. In this update, we’ve adjusted down China’s gas demand compared with our H2 2018 outlook, primarily due to the government’s more cautious approach towards fuel choices and the downgraded GDP forecast. We have also downgraded the domestic supply outlook as unconventional resources face more challenges, which provokes a greater need for LNG imports in the long term.