Oil & Gas: Climate Targets Underwhelm But Gas Outlook Constructive

摘要

1. China's 14 Five-Year Plan (FYP), which will run from 2021 to 2025, failed to meet expectations for Beijing to set more stringent policies to tackle climate change and lay out clear paths to realising its de-carbonisation and energy transition ambitions. 2. Instead, it confirmed that Beijing's focus in the immediate future will lie in implementing President Xi Jinping's 'dual circulation' macroeconomic framework and eradicating deficits in several key technologies, while further improving energy self-sufficiency. 3. The 14th FYP is also light in offering concrete action plans to achieving China's long-term climate targets, and carries limited specific mentions of oil and gas sector in general. This makes it likely that the current status quo, where natural gas and lowersulphur refined fuels are taking on leading roles in the national energy mix, will be maintained for some time. 4. All signs point to more 'sector-specific' goals and policies being made available towards the end of the current year or early next year, when the central government is expected to hold another round of meetings.