Asia Pacific: Production

The supply/demand gap in China and India will widen over the coming months as China’s production growth will fall short of increases in demand and Indian production looks set to decline further.

China’s gas production is expected to rise by around 2% on annual basis in H2. Lower gas prices and the prospect of further cuts to citygate prices in November are hitting growth in domestic production. China’s output fell by 4% year on year in July and was broadly flat in August. An increase in annual growth is expected in the latter part of H2, but it will fall short of consumption growth expected over the period.

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