Quick View: China's Robust LNG Appetite To Benefit Qatar, Russia & SSA

摘要

The Latest: LNG demand in China continues to show resilience despite the global pandemic, proving to be a beacon of strength in the global LNG market as deliveries headed elsewhere encounter fresh headwinds. Through Q1 2021, China's LNG imports are up by 10.3% year on year, due to strong seasonal demand and the conversion to gas from coal across factories and households. The Covid-19 situation within China appears all but stable relative to regional and global peers, many of whom are seeing renewed surges in new infections. Efforts to reopen the economy are making steady positive progress, aided by improving access to vaccines though the pace of vaccinations has lagged the targets set by the government. The domestic gas market fundamentals continue to be positive as the government is expected to launch further measures to promote industrial gasification and improve deliveries to users. The national lean towards gas, which began in earnest during the 13th Five-Year Plan period of 2016 to 2020, looks to have further to go as long-term policy direction continues to favour gas. This was reaffirmed in the recently adopted 14th Five-Year Plan (14FYP) which reiterated China long-term commitment to further boosting gas use as part of broader means to decarbonise the economy.