Asia Pacific: Production

November 2016

As Beijing looks ahead to winter, there is pressure on domestic gas suppliers to help meet market needs.

China’s gas supply/demand gap has been growing, and the potential for regional supply shortages is looming for key markets. Lower prices have hit domestic output and national producers are seeking to lift prices to help them compensate production costs. Gas output rose by just 1% in September year on year. Over the first nine months of 2016, gas production reached 98 bcm, up by just 2% from the same period last year. Although further increases are expected in Q4, and a revision to prices could help boost output, the pace of domestic supply growth will still lag behind that of demand growth.