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China On Track for First Gas Demand Decline In 20 Years

NATURAL GAS

Chinese gas demand is expected to fall 1% this year, marking the first annual decline since at least 2002, according to a researcher with China National Offshore Oil Company.

  • Chinese natural gas demand is expected at 363.3bcm for 2022, according to Cnooc.
  • Domestic gas output is expected to rise to 217bcm, LNG imports are estimated to fall to 89bcm and pipeline gas is expected to increase to 65.2bcm, Cnooc said.
  • Chinese Covid-19 curbs and high import costs weighed on the countries demand in 2022.
  • China’s full-year GDP growth may reach 4% if the government stimulus helps the economy recover, but it will still be lower than the 5.5% target.
  • Companies in China are set to ramp up domestic production and fill up gas storage facilities, while increasing imports of cheaper pipeline gas from China and Central Asia.
  • Natural gas demand this winter is estimated between 168-190bcm, according to officials from Chongqing Gas exchange. PetroChina expected winter gas demand higher at 187-190bcm.
  • Japan is likely to take over as the largest LNG importer this year as a result of falling Chinese demand.
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