Analysis: China's downstream gas market competition heats up

Analysis: China's downstream gas market competition heats up with arrival of Western participants


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Italy's Eni and China's Zhejiang Energy signed March 30 a memorandum of understanding on strategic cooperation, including potentially developing a long-term LNG supply agreement and joint participation in gas and LNG projects. This came a week after Total announced that it formed a marketing joint venture with Shenergy Group.
Both Zhejiang Energy and Shenergy are local government-owned enterprises that mainly engage in power generation and the gas industry. They supplied 11.8 Bcm and 9.8 Bcm of natural gas in 2019, accounting for more than 81% and 90% of total gas consumption in Zhejiang province and Shanghai, respectively.

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