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China 2014 natural gas demand up 5.6pc at 178.6 bcm

Published Updated

imageBEIJING: China's apparent demand for natural gas grew by 5.6 percent last year to 178.6 billion cubic metres (bcm), less than half the speed of the growth rate in 2013, China's top economic planner said on Tuesday.

That also compares with an average annual growth rate of 11.7 percent between 1995 and 2009, according to the Energy Research Institute at the central planner, the National Development and Reform Commission (NDRC).

Apparent demand rose 12.9 percent in 2013 and 13 percent in 2012, the NDRC said.

Last year, natural gas demand growth dropped off early with China's slowing economy and an ill-timed hike in prices kept gas use at levels well below forecasts.

Domestic natural gas output was also up 5.7 percent to 127.9 bcm, while imports rose 8.2 percent to 57.8 bcm, the NDRC said in a statement on its website.

For December, natural gas demand was relatively high at 19.6 bcm, up 8.7 percent on year and up 15 percent over November on a daily basis.

High seasonal demand during winter months can strain Chinese natural gas supplies, causing shortages of the kind that forced regulators to cut supplies to industrial users in late 2013.

Apart from boosting domestic production, China has secured greater supplies by signing long-term agreements with Turkmenistan and Myanmar for piped gas, as well as a number of long-term import deals of liquefied natural gas.

The NDRC said last week that China would continue to prioritise natural gas supplies for residential users and public transport this year.

Though demand growth for the cleaner-burning fuel was expected to have slowed as it lost competitiveness versus diesel fuel for transport following a steep fall in oil prices, some analysts said the NDRC could have overestimated the slowdown.

Data from China's statistics bureau combined with data from customs authorities give slightly different figures for total supply, with growth closer to 8 percent.

Copyright Reuters, 2015

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