China’s National Energy Administration said that the country’s natural gas consumption is likely to grow at the slowest pace in five years in 2020 due to the coronavirus pandemic.
This year, China’s natural gas consumption is estimated to grow by 4.2% following 1.5% in the first half. Total consumption this year is seen to be at 320 bcm.
Natural gas output was forecast to jump by 9% year-on-year at 189 bcm while imports are likely to be at 140 bcm with 50 bcm coming from pipeline gas while the rest from liquefied natural gas (LNG) shipments.
Demand for natural gas was majorly being brought by the city gas sector, with several areas in northern China, including Beijing, had extended the winter heating season in March as part of efforts to contain the coronavirus.
Industrial gas consumption had recovered in June, to the same level as of June 2019, after the cuts in gas prices aimed at helping industrial users recover from the pandemic.
The report further expected gas supplies in both domestic and international markets to be adequate and low gas prices were estimated to spur its competitiveness against other energy sources.
