Asia Pacific: Production

Growth in Chinese gas production is expected to accelerate in 2017, but it will still be outpaced by demand growth. 

Chinese gas output rose by 5% on an annual basis in November 2016, the highest rate of year-on-year growth for any month since April. Production is estimated to have grown by around 2% in 2016 as a whole. The government has been aiming to increase domestic gas output over the winter to avoid regional shortages during the peak of the season. Production growth is likely to see further gains in Q1 but is still expected to be lower than consumption growth. Consequently, China’s supply/demand gap will continue to widen in 2017.

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