Global Markets

Full shift to gas in China’s winter heating systems will be difficult – Woodmac

China may struggle to fuel winter heating systems exclusively with gas because the fuel is more expensive than coal and in short supply.
By Staff reporter 10 July 2018 0 31677

China will struggle to fuel winter heating systems exclusively with gas because the fuel is more expensive than coal and in short supply, Wood Mackenzie said in a note on Monday.

Northern China burns 30 billion cubic metres of gas for winter heating, but this accounts for just 10% of the region’s overall heating demand.

“One can imagine the potential impact on global gas markets if China were to switch fully, or quickly,” said Prakash Sharma, head of China Research at Woodmac.

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