Insight
China gas and power month in brief: energy reforms gather momentum
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Change was in the air in May with several key energy reform initiatives being introduced. China is removing cross-subsidisation in gas prices by raising residential rates to be on par with non-residential prices. It is also looking to rationalise development of gas storage facilities to improve peak-shaving capabilities. As an integrated part of the drive to improve environmental quality, coal-fired power buildout will be kept under closer scrutiny. And to support sustainable growth of renewables, the government is switching wind power pricing from a feed-in tariff system to auctions. These initiatives will pave the way for a future of cleaner energy, though some of them could create uncertainties in the short term.
Table of contents
- Executive summary
-
Markets
- NOCs manage summer demand to prevent gas shortages
- Power demand growth regains momentum
-
Policy
- NDRC merges residential and non-residential city-gate gas prices
- and calls for orderly development of gas storage facilities
- Wind power pricing transitions to auctions
- Coal-fired power buildout kept under close scrutiny
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Corporate activity
- NOCs opt for short-term deals and destination flexibility
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Smog watch
- May AQI remains disappointing
Tables and charts
This report includes the following images and tables:
- Monthly gas demand, bcm
- Monthly LNG imports, Mt
- Monthly power demand, Twh
- Beijing AQI
What's included
This report contains:
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