Chinese LNG sector needs local support
An ENN Energy LNG refilling station in Lianyungang port. China has around 1,800 LNG filling stations. (Interfax)
State support is desperately needed to shore up China’s once-booming inland LNG industry, which is battling overcapacity and weak demand fundamentals, according to experts.
Problems have mounted in the past two years for the small-scale, single-train liquefaction facilities that make up much of China’s LNG industry. Two rounds of gas price increases since mid-2013 have lifted production costs, while the oil price slide has slowed or even reversed fuel switching from diesel to LNG.