Covid-19 to slash China’s 2020 gas demand
LNG will bear the brunt of the impact of the coronavirus outbreak on China’s demand for natural gas in 2020. But the effects are likely to be short-lived unless there is a major escalation of mainland infections
China’s demand for natural gas is expected to be 10bn m3 less in 2020 than it would have been in the absence of the coronavirus Covid-19 outbreak, according to Sublime China Information (SCI99). Most of the reduction, around 9bn m3, is expected in the first quarter with another cut of 1bn m3 in quarter two. “We expect that the market will return to normal from March if things do not escalate,” says Michael Mao, senior energy analyst at SCI99, an influential provider of commodity data and analysis based in Zibo City, Shandong Province. Mao described the reductions as “minor” in the context of a 300bn m3 market. In 2019 Chinese gas consumption reached 304bn m3, up 10pc on 2018. However, he c
Also in this section
26 April 2024
While the US has been breaking records for its premium grade crude, there are doubts over whether you can have too much of a good thing
26 April 2024
Slowing demand growth and capacity expansions will squeeze refiners in coming years
25 April 2024
Some companies with assets in Israel have turned towards Egypt as tensions escalate, but others are holding firm despite rising tensions
24 April 2024
But even planned exploration activity is unlikely to reverse declining output from mature fields