Reforms aim for cleaner energy mix: China gas and power month in brief
October is a seasonal low for China's gas market. Overall gas demand expected to grow by 5% in October, with LNG imports up by only 15%. But concerns over a gas shortage are back on the table after China entered the heating season in November. Although the country is ramping up domestic production and LNG imports to secure supplies, pipeline transmission and gas storage could be the bottleneck to meet peak demand. No major LNG deals were seen in the market, but the government is pushing hard on price liberalisation in Fujian province and the fertiliser industry. Meanwhile, third-party access to LNG regas terminals remains a stumbling block to gas sector reform. Elsewhere, the Chinese government announced cost-accounting protocols for power grid transmission and wishes to set the country's power sector on a cleaner path of growth.