Asia Pacific: Production

China’s domestic production has seen gains, but they have not been enough to reduce the country’s supply/demand gap.

China’s gas production increased by 15% year on year in April, the strongest rate of growth in domestic output so far this year. However, even this has failed to match the growth in gas use, with demand shooting up by 22% on an annual basis that month. The government is pushing for increased domestic production, and although output is expected to continue to rise during the second half of the year, the growth rate is likely to fall from the level seen in recent months. China’s overall domestic production could rise by around 6% on an annual basis in 2017. For more on the longer-term outlook for China’s gas market and growing supply/demand gap (see China’s gas market to provide an import boom, 22 June 2017).

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