Exploration & Production

Shaanxi floods trigger spike in Chinese LNG prices

Floods in China’s Shaanxi province have led to the shutdown of gas plants in the region, with limited supply boosting LNG prices Floods in China’s Shaanxi province have led to the shutdown of gas plants in the region, with limited supply boosting LNG prices.
By Tang Tian 9 August 2017 0 27113
With supplies limited, some buyers are turning to the Tianjin terminal to meet demand. (CNOOC)

Northern Shaanxi is facing its worst flooding for decades. The situation has raised wholesale LNG prices locally and in neighbouring Shanxi, and further increases are expected this month.

Heavy downpours battered the city of Yulin for 12 hours during 25-26 July, causing flooding in the counties of Suide, Zizhou and Mizhi. More than 71,300 people were relocated and direct economic losses will exceed RMB 230 million ($34.1 million), the provincial flood control headquarters said following the disaster.

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