China turns up gas heat in 3 million more homes

China has switched another 3.29 million households to gas heating this winter, more than it added last year, as Beijing continues to push cleaner fuels to curb pollution.

Gas heating has been installed in recent months across a new swathe of northern China — known for its heavy smog — underlining the government’s commitment to reduce pollution even after last year’s efforts triggered a fuel shortage that left people freezing in their homes.

The new gas users will require an additional 4.53 billion cubic meters (bcm) of gas in the Nov. 15 to Mar. 15 period, but analysts said the increase would not necessarily boost overall consumption in the country. “If China wants to deliver gas as promised to households, it will sacrifice industrial supplies,” said Chen Zhu, managing director of consultancy SIA Energy.

Last year’s surge in gas demand combined with poor storage and insufficient infrastructure to cause a supply crunch that pushed prices to record levels just weeks into the heating season, forcing Beijing to pause its clean-fuel campaign.

This year, a warmer-thanusual November, slack industrial demand and higher supplies of liquefied natural gas have pressured wholesale gas prices. China’s energy majors also bought more supplies ahead of the heating season, with November gas imports via pipeline and ship hitting a record. Even so, China is unlikely to meet the additional demand from the new users, without cutting some supply to industry, Chen said.

Chen Hao, a resident of Xi’an, capital of Shaanxi province, said he doubted whether local households earning an average of 3,000 yuan a month could afford the extra 500 yuan in winter heating bills after switching to gas.

“This winter, village officials are under pressure to keep us warm,” said an elderly farmer surnamed Liu living in Zhangjiapu village in Shanxi province. Last year, Liu survived the winter without heat.