China's gas market maintained its growth momentum in 2018. We estimate total gas demand grew by around 15% year-on-year. Despite this rapid demand growth, China has been better prepared to supply gas this winter. And with milder temperatures, we haven't seen a repeat of last winter's supply crunch so far. We expect the strong gas demand growth to persist through the medium term, although the growth rate will level off given the higher base and infrastructure constraints. Longer term, gas demand will grow to 698 bcm by 2040 - 21.5 bcm higher than our H1 2018 outlook. In this update, we've downgraded domestic gas production in light of slow progress in conventional discovery and increasing downside risks to unconventional ramp-up. China's gas import dependency is expected to rise from 42% in 2017 to 48% by 2040. LNG demand is forecast to reach around 70 mt by 2020 and 115 mt by 2040.