China's gas market is changing dramatically. With much slower gas demand growth LNG buyers are struggling to find a home for their contracted volumes. In the power sector combined heat and power (CHP) looks a promising option to take more gas attracting a number of market players. Price differentials between spot LNG and China s regulated piped gas prices are also supporting fuel switching to LNG. However LNG demand upside in the power sector still remains limited due to a number of market specific challenges.