In 2017 we witnessed dramatic changes in China's gas market. With a 18% year-on-year demand growth year-to-date (January to October), the market shifted from oversupply to shortage, in just 12 months' time. We expect the strong gas demand growth to continue through the mid-term. Underpinned by thorough implementation of coal-to-gas switching in both industrial and residential sector, gas demand will grow from 206 bcm in 2016 to 332 bcm by 2020 – 3% higher than our H1 outlook. This will require a higher-than-expected increase from all supply sources – domestic production, pipe gas imports, as well as LNG. There's also a risk that current pipeline connectivity and regas capacity won't be able to support the size of growth. Future policies will need to weigh carefully the relationships between supply, infrastructure and demand.