BAKU, Azerbaijan, January 29. The overall growth in Chinese gas demand is projected to ease slightly to 6 percent in 2024, Trend reports.
According to the Interantional Energy Agency (IEA), in 2023, China's demand for natural gas bounced back from the challenges faced in 2022, regaining strength after the adverse impacts of high global gas prices on its competitiveness in the energy mix. The estimated growth in China's gas demand reached 7 percent, or approximately 26 bcm, in 2023.
This growth was primarily fueled by the recovery in industrial activity as COVID-related restrictions eased and global gas prices steadily declined throughout the year, the agency explained.
Thus, the industrial sector contributed to around 40 percent of the country's total natural gas demand growth, benefiting from lower gas prices. Lower gas prices, combined with limited hydro availability in the first half of 2023, supported increased gas consumption in the power sector, which recorded a year-on-year increase of over 6 percent.
Looking into 2024, while China's industry sector will remain a key driver of additional gas consumption, lower economic growth projections compared to pre-crisis levels are expected to temper the sector's gas demand increase to 6 percent.
As per the IEA's forecast, the power sector's gas burn is set to rise by over 6 percent due to growing electricity demand, and the expansion of the gas distribution grid will contribute to maintaining residential and commercial demand, which is expected to grow at nearly 6 percent in 2024.