BEIJING - China's gas sector exhibited a strong performance in the latter half of 2020 and medium-term growth will remain solid, according to the latest report from Fitch Ratings.
A recovery in industrial activity following coronavirus pandemic lockdowns and an exceptionally cold winter triggered a gas-supply shortage in late 2020, with strong demand leading to higher gas imports, the ratings agency noted.
However, last year's gas-supply crunch was less severe than that seen in 2017, as national oil companies had moved some long-term contract deliveries to the winter to close the gap, according to the report.
The presence of new liquefied natural gas terminals, storage facilities and pipelines also helped to boost supply.
Fitch said it expects the medium to long-term gas supply to remain firm, driven by solid gas demand momentum.
"National oil companies are steering investment towards gas rather than crude oil in a bid to achieve carbon neutrality while safeguarding national energy," it noted.
