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Domestic supply bolsters China’s LNG output

An increase in the domestic supply of feedstock gas helped unleash production at China’s LNG plants in H1 2019, but the increased supply has weighed on the industry’s profitability An increase in the domestic supply of feedstock gas helped unleash production at China’s LNG plants in H1 2019, but the increased supply has weighed on the industry’s profitability.
By Tang Tian 29 August 2019 Asia Pacific / Supply & Demand 0 34526
Yanchang Gas's Yanchuan LNG plant. (Interfax)

The key issue: Domestic liquefaction plants have taken a greater share of China’s LNG market away from regasification terminals, which in turn has put downward pressure on prices.

Interfax analysis: Chinese liquefaction plants increased their share of the domestic market in H1 2019, ostensibly because upstream supplier PetroChina supplied more feedstock gas  to the country than in previous years.

Liquefaction plants and import terminals in China supplied a combined 11.94 mt of LNG in H1 2019, an increase of 12.18% from H1 2018, according to figures...