Natural gas shortage unlikely in 2018

Meeting China's rising demand for natural gas, especially in the heating season, could prove to be challenging due to limited domestic output, slow pipeline imports and distribution network bottlenecks. However, experts believe a natural gas shortage is unlikely this coming winter as higher liquefied natural gas imports will help bridge the supply demand gap.

"China won't surprise the world again during this year's winter season despite its higher natural gas demand, as significant restocking activity by major LNG imports will help alleviate the gas shortages in northern China," said Marc Howson, senior managing analyst of LNG at S&P Global Platts.

"Even though domestic output and pipeline imports are unable to keep up with gas consumption growth, LNG will help bridge the supply-demand gap, especially in the highly populated coastal regions, which are largely removed from gas fields and import pipelines," he said.