Chinese gas demand slump to hit LNG exports

A fall in projected gas demand growth in China is likely to contribute to an oversupply of LNG in the Asian market, according to analysis by energy consultancy Wood Mackenzie.

The firm is forecasting a surplus of approximately 18 Bcm of LNG contracted to China across 2015–17.

While the Chinese gas market looked set to continue its pace of growth 12 months ago, with an average of over 15 per cent annually during the previous decade, a range of underlying factors – including weaker economic growth and low oil prices – have drastically reduced predictions for growth.

Consequently, Wood Makcenzie predicts China’s national oil companies to slash domestic output growth from some projects by as much as 25 Bcm across 2015–17 compared to previous forecasts.

Visit the Wood Mackenzie website here for more information.

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