China LNG prices plunge on soft demand
Sinopec’s Guangxi LNG terminal. Imports have cut regional demand for domestic LNG. (Tat Hong Holdings)
Chinese LNG prices fell to their lowest level since 2009 in the first half of this year and could be set to decline further as fading industrial growth reduces energy demand, industry insiders have told Interfax Natural Gas Daily.
The ex-works price of LNG sold by Chinese liquefaction plants averaged RMB 3,087 per ton ($8.93/MMBtu) in H1 2016, a 25% drop from H1 2015, according to data from SCI International, a commodities information provider in Shandong. A soft market and low demand have weighed on domestic LNG prices, according to SCI analyst Liu Chaohui.