China is pinched by natural gas oversupply due to slowed consumption growth and increased imports, a latest report showed.
China's apparent consumption of natural gas amounted to 191 billion cubic meters in 2015, up 3.7 percent year on year, the report by China National Petroleum Corporation said.
The 10-year low growth was attributed to economic slowdown and high gas prices, according to the report.
Meanwhile, China's natural gas imports rose 4.7 percent year on year to 62.4 billion cubic meters, while domestic production expanded 3.5 percent year on year to 131.8 billion cubic meters.
As a result of optimistic judgement of increasing demand for natural gas and the need to ensure energy supply security, China signed a raft of long-term contracts to import natural gas around 2010. The contracts are taking effect.
Weak demand has led to excessive supply of natural gas in China. However, natural gas consumption is expected to rally in 2016, thanks to price cut and environmental protection pressure, according to the report.
