Electricity market reforms in Guangdong province could herald a more sweeping slowdown in China's demand for natural gas, according to Wood Mackenzie Ltd.. Gas-fired plants in the economic powerhouse have moved from steady power generation to mostly peak-time operations, marking a shift that could further subdue consumption growth of the cleaner-burning fuel.

The change reflects broader adjustments in the region's energy mix as renewable sources expand and coal-fired generation remains dominant for baseload power. Gas, previously relied upon for consistent output, is now primarily reserved for times of high electricity demand.

This transition may signal a turning point for China's overall gas consumption trajectory, as Guangdong—long a bellwether for national energy trends—recalibrates its power generation strategy amid evolving policy frameworks and environmental targets.