Chinese gas demand slumps

China’s gas demand is set to drop by a record according to the latest forecast of PetroChina.

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China’s gas demand dropped by 1.4% yoy in the first 9 months of 2022 according to NDRC data. this has been largely driven by lower industrial gas demand and gas-to-coal switching dynamics in the power sector.

Slower economic growth, strict covid lockdowns and record high gas prices all depressed China’s gas demand in 2022.

Sichuang Energy Consulting expects China’s gas demand to decline by 4.7 bcm this year, its steepest drop on record.

Sluggish gas demand in China was a key enabler of higher LNG availability to Europe, as China reduced its LNG imports by almost 20 bcm in the first 10M of 2022.

This downward flexibility might not be present next year, as China’s long-term contract exposure is further improving with destination-fixed volumes.

What is your view? How will China’s gas demand evolve in the coming years? China alone accounted for 30% of gas demand growth in the last decade… without China there is hardly any growth prospects for gas.

Source: Greg Molnar