Supply & Demand

China's gas-fired power industry profitability in doubt

China’s gas-fired sector is concerned that it cannot make a profit until the price of LNG imports decreases.
By Li Xin 18 November 2011 0 2061

China’s gas-fired sector is concerned that it cannot make a profit until the price of LNG imports decreases.

The gas-fired power sector is primarily situated in eastern China, within the manufacturing quadrant of Guangdong, Fujian, Zhejiang and Jiangsu provinces. Far from the nation's gas pipeline networks, gas-fired plants are reliant on imports of LNG - the cost of which they believe is exorbitant, Qian Li, analyst with C1 Energy, told Interfax on Thursday.

The cost, insurance, freight price for LNG in Shenzhen, a sprawling metropolis in Guangdong Province, stands...