China's LNG prices at six-year highs on winter demand
BEIJING—China's domestic prices for LNG on Monday topped 7,000 CNY/metric t ($1,061/metric t), the highest since at least 2011 and a 50% increase in less than two weeks. Demand is soaring, with millions of homes burning gas for the winter instead of coal.
Wholesale LNG prices have gained more than half of their value from mid-November, meaning the jump in prices has come less than two weeks into northern China's heating season.
Two LNG dealers in the northern province of Hebei said the price could possibly be a record high as China's LNG market is much less developed than other commodities, with significant imports of the fuel appearing only over the last five years.
China's state-owned oil firms are maximizing production at domestic gas fields and boosting LNG imports at receiving terminals, although that has not kept the surge in demand from Beijing's aggressive gas push from outpacing supply.
Import terminals run by China National Offshore Oil Co. and PetroChina are quoting ex-terminal prices much lower, at 4,700 CNY/metric t–6,040 CNY/metric t, but dealers said they are asking approximately 7,000 CNY/metric t.
LNG plants in Inner Mongolia, Shaanxi, Shanxi, Hebei and Shandong pegged wholesale prices on Monday at 6,950 CNY/metric t–7,050 CNY/metric t, according to an LNG price monitoring agency in Jiangsu.
(Reporting by Chen Aizhu; editing by Tom Hogue)
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