Strong demand in China and above-average temperatures will support the growth of Northeast Asian gas consumption during the summer.
Chinese gas demand was up by roughly 9% in April from a year earlier. This followed strong growth in Q1, when consumption rose by 16% on an annual basis. Although economic expansion is expected to slow this year, gas offtake is likely to continue to be strong over the coming months. Chinese gas demand is expected to grow by around 6% year on year during the summer (June-August). The lower gas price is one factor supporting increased growth. However, although pricing is important, policy support will also be critical to the development of the gas market. The government is promoting gas use, and its plans to increase the country’s combined-cycle gas turbine capacity will be key to reaching growth targets.
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