LNG

Chinese LNG prices unlikely to snowball this winter

Another winter price shock is unlikely to be on the cards for China’s LNG market as steps have been taken to restrain demand within touching distance of supply Another winter price shock is unlikely to be on the cards for China’s LNG market as steps have been taken to restrain demand within touching distance of supply.
By Tang Tian 9 July 2018 0 31664
A storage tank at the Ningbo LNG terminal. (CNOOC Zhejiang LNG)

A consensus is forming that China’s domestic LNG prices are unlikely to set record highs this winter thanks to improved flexibility in the supply network and more measured coal-to-gas (CTG) switching. The view will go some way to assuaging gas users, who feared they could be priced out of the market for the fuel later this year.

End-user prices for trucked LNG in northern China are unlikely to top RMB 10,000 per ton ($29.2/MMBtu) this winter, JLC Information analyst Miao Yingying told delegates...