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Project Insights

High prices hit LNG in China’s transport sector

High prices may sap LNG’s momentum in the Chinese transport sector despite the in-roads made by the fuel in recent years High prices may sap LNG’s momentum in the Chinese transport sector despite the in-roads made by the fuel in recent years.
By Tang Tian 4 April 2019 Asia Pacific / LNG 0 34108
An LNG filling station in Jiangsu. (Interfax)

LNG has made in-roads as a fuel in China’s transport sector following the government’s push to reduce pollution, but as prices rise for end-users its adoption in bus and truck fleets could stall.

Chinese end-user LNG prices have increased in the past year and the fuel is struggling to compete on cost with domestic piped gas, according to Chen Jie, liquefaction technology director at the Research and Development Centre of China National Offshore Oil Corp.’s gas and power business.

The wholesale price of LNG in China from...