China LNG plants to struggle with platform buying

Beijing wants more Chinese gas users to buy through trading platforms, but pipeline bottlenecks and prices are limiting the opportunities for LNG plants
By Tang Tian 13 September 2017
The Shanghai skyline. The NDRC wants more trading through the Shanghai and Chongqing exchanges. (Interfax)

China’s liquefaction plants will struggle to heed a recent call by Beijing to buy their supply through the Shanghai and Chongqing exchanges this winter, industry experts have told Interfax Natural Gas Daily.

The National Development and Reform Commission (NDRC) announced a citygate price cut two weeks ago and said it wanted to encourage more direct trading through the two exchanges.

“Allowing direct trading is a move to introduce market elements to gas pricing as China seeks to move away from the current mechanism where end-tariffs are...

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