Gas Imports: Market Hopefuls To Lose Out From Russian Entry

摘要

In June 2013, we assessed the Chinese gas market and looked at the likely beneficiaries of Chinese gas import demand growth (see 'Gas Demand Boom: Winners And Losers', June 23 2013). We revisit our conclusions, and specifically consider how the Sino-Russian gas agreement, signed in May 2014, changes the outlook for existing players and prospects. China's gas demand growth underpins a surge in gas imports. In 2013, gas imports increased by 47.1% year-on-year (y-o-y) from 31.8bn cubic metres (bcm) in 2012 to 46.8bcm in 2013. Unlike 2012, liquefied natural gas (LNG) imports made up more than 50% of total gas imports, thanks to a surge in LNG imports from Australia and Malaysia. LNG import growth represented 68.1% of total gas import growth. Pipeline imports also recorded an impressive 27.4% y-o-y growth in 2013, as supplies from Kazakhstan and Myanmar started flowing, while Uzbekistan continued to deliver more gas into China.