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Shanghai exchange still playing minor role in China’s gas demand

The SHPGX continued to meet only a small proportion of China’s gas demand last year despite a record volume of the fuel changing hands on the platform The SHPGX continued to meet only a small proportion of China’s gas demand last year despite a record volume of the fuel changing hands on the platform.
By Colin Shek 7 February 2019 0 33920
A meeting between SHPGX and NOC officials. (Shanghai Oil and Gas Trading Center)

The Shanghai Petroleum and Gas Exchange (SHPGX) handled more transactions of pipeline gas and LNG in 2018 than it did in 2017, but sales volumes as a share of Chinese gas consumption slowed. This underlines the fact that there is a long way to go before the bulk of China’s gas demand will be met by supplies purchased via domestic trading platforms.

Turnover on the exchange reached a record 60.46 billion cubic metres last year, comprising 55.54 bcm of pipeline gas and 3.33 mt of LNG,...