Asia Pacific: Consumption
China’s recent gas price cut is expected to help further support gas demand growth through the end of 2017 and into 2018, helping to drive up consumption in Northeast Asia as a whole.
Beijing has cut citygate gas prices for non-residential users for the first time since November 2015 (see Price Developments). The citygate cut will reduce prices for commercial and industrial users and is expected to help boost gas offtake. China’s gas demand has already expanded rapidly in recent months after slow growth at the start of the year. Gas use rose by 23% on an annual basis in July after having risen by 28% year on year in June – the highest monthly growth so far this year. Electricity demand increased to a record high in July, driving up the use of gas-fired power generation and supporting total gas consumption during the month. Power sector gas demand will continue to support growth in Chinese gas consumption over the coming months. China’s total gas demand is expected to rise by around 13% on an annual basis this year.