China's zero-Covid policy will continue to dampen gas demand
Letter from China: Appetite for gas shrinks
Even potential government stimulus measures might not be enough to bolster demand
This year so far has been challenging for China’s gas market and looks likely to remain so over the final quarter. Attention is now shifting to the demand outlook for 2023 as Beijing considers the next stage of its zero-Covid strategy, but there is little relief in sight. While China’s commitment to gas is undiminished, the slowdown in domestic demand has been obvious since the middle of last year. While apparent consumption climbed by 12.5pc in 2021, much of this growth was concentrated in the first six months, which logged a 17.4pc year-on-year increase as the economy bounced back from the initial Covid epidemic. The slowdown in H2 2021 has carried into this year, with apparent consumption
Also in this section
28 April 2026
Oil traders warning of $200/bl oil are wrong, and the market should be wary of proclamations that the impact of the oil shortage has only begun to be felt and a that a ‘harsh adjustment’ is coming—even for industrialised nations
28 April 2026
Restoring supply from Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Iraq involves complexities far beyond simply adjusting operational controls
28 April 2026
Datacentres will guzzle power at a ferocious rate, but the impact on wider energy markets will be far more complex than previously thought
28 April 2026
The key energy player faces balancing regional routes, political complexities, and creating a clear strategic vision for energy security
