China’s Natural Gas Consumption Soars

21 Dec 2017   China

Chinese natural gas consumption surged through the first 11 months of 2017, up 19 percent year-on-year. China is the third largest consumer of natural gas in the world, behind the U.S. and Russia, and is expected to show the strongest demand growth over the coming decades—propelling it to second place by 2040. As the nation’s industrial and residential sectors pivot away from coal (think: smog), natural gas demand is going through the roof, with domestic Chinese LNG prices reaching a six-year high in recent weeks . One data point that highlights these tightening fundamentals is how CNOOC just rented a convoy of 100 trucks to transport LNG thousands of kilometers to northern regions in China to fill supply gaps. Driven by this recent rampant rise, China is now the second-largest importer of LNG globally. Spiking demand has lifted Northeast Asian spot LNG prices above $10/MMBtu. (Click to enlarge) Last […]

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