China Dec gas demand up 9.3 percent to 21 bcf/d

 China's apparent gas consumption, which excludes inventory changes, increased 9.3 percent from a year earlier to 21 bcf per day in December, the highest volume on record, government data showed.

 

Actual consumption was expected to be slightly higher than this as China normally draws down inventories in winter season.  China never reports inventory changes.

The country has very limited storage capacity, which is estimated to be equivalent to less than 3% of itsgas consumption.

Despite fast rising production and imports, gas shortage occurred often in past years, especially in peak winter demand seasons. The government now approves major new gas use projects only when gas supplies for the projects are secured beforehand.  

China aims to double gas consumption to some 38.7 bcf per day by 2020, as one of the major ways to reduce its over-reliance on coal so as to address air pollution issue.