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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
NATURAL GAS
China’s natural gas power capacity is set to expand in 2024 and softer gas prices this year will accelerate gas consumption growth in the sector according to BNEF.
- Gas power plants are likely to be profitable in 2024 based on the Asia spot LNG futures curve and assuming the latest annual power contract price for Guangdong province. Forward prices suggest costs are below a profitability threshold of $12/mmbtu until November in the province.
- Power sector gas consumption in China may grow 7.1% this summer compared with last year to 35.4bcm. China could add more than 25GW of gas power capacity in 2024 mostly in Guangdong and Sichuan provinces.
- Power plant gas burn still hinges on the availability of other electricity sources such as hydro power, while extreme weather such as floods adds uncertainty.
Source: BNEF
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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