LNG in China

Six Takeaways

By Pat Roberts

The 1st CWC IPCE China LNG International Summit was a big success with over 200

people in attendance. Pat Roberts, Associate Director - Gas at CWC, has

brilliantly summarised the main takeaways from the event:

1. The “New Normal” era has arrived- China is committed to restrict coal usage and promote gas to 10% of total energy use by 2020

2. Several initiatives to boost domestic gas production – conventional and unconventional gas – big growth expected around end of this decade

3. LNG‘s role in the energy mix depends on its price - demand set to rise to 45Mtpa by 2018 (mostly covered by long term purchases) and estimates for 2020 LNG demand 45-60Mtpa

4. With Asian spot premium collapse, expect more spot/short term sales into China (as ample re-gas capacity available and domestic price is higher than current spot import prices)

5. Expect the rise of the private Chinese buyers – buying spot and short term

6. A lot of new gas demand is industrial, residential and transportation related – is LNG better priced on oil rather than HH?

Continue the discussion of these topics at some of our upcoming LNG events: