Gas production in China and India will fail to keep up with market growth in both countries.
The supply-demand gap in China widened at the start of 2016. While demand increased by nearly 18% year on year in January, domestic production rose by just 4%. This is a slowdown from the growth rates seen for 2015. Updated figures for China show production reached 135 bcm in 2015, up by 6% from 2014 levels. In 2016, low oil and gas prices will hit upstream investment at China’s NOCs, meaning domestic supply growth is likely to lag behind demand growth – leaving room for cheap imports to move in.
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