Industry Trend Analysis - Gas To Grow In 2017 On Policy Tailwinds - MAY 2017
BMI View : China ' s natural gas production is poised to grow by 4.0% y-o-y in 2017 , as stringent emissions laws and favourable government policy continue to incentivise SOEs to step-up investment towards natural gas.
China's natural gas production is poised to grow by 4.0% y-o-y in 2017, as tighter environmental laws and favourable government policy for natural gas development lead the country's state-owned producers to channel investment towards natural gas projects, at the expense of oil.
The upward momentum in the Chinese natural gas sector is underpinned by Beijing's continued push to increase domestic natural gas consumption, to displace higher carbon energy sources such as coal. China is seeking to boost the share of natural gas in its primary energy mix from 6.0% currently to 10.0% by 2020, as its ongoing battle against severe air pollution intensifies.
|Output, Consumption To Grow On Policy Tailwinds|
|China - Monthly Natural Gas Production & Apparent Consumption, bcm|
|Source: China National Bureau Of Statistics, China General Customs Administration, Bloomberg|