Domestic liquefied natural gas prices broke through 10,000 yuan

2022-05-31 0 By

Reporter | Hou Ruining edit | 1 “yesterday, hunan liquefied natural gas (LNG) purchase price of a certain power plant broke through ten thousand yuan per ton.”On February 24, Wang Haohao, a natural gas analyst from Lonzhong Information, said in an interview with Jiemian News that LNG prices in central and eastern China have surged recently.On February 23, LNG prices in eastern China reached a peak of 9,600 yuan per ton, with hunan province in central China hitting a record high of 10,000 yuan.Jiemian News learned from Shanghai Oil and Gas Trade Center that on February 23, the national index of China’s LNG ex-factory price was 8,314 yuan/ton, 1.4 times higher than last year.Compared with 4,790 yuan per ton on January 24, the month-on-month increase was 67 percent.China’s national index of ex-factory LNG prices hit a low of 4,545 yuan per ton on Jan. 28 and has since risen sharply, according to data from the Shanghai Oil and Gas Trade Center.From February 18 to 23, the five-day increase was 24%.According to the National Bureau of Statistics on February 24, the domestic LNG price in mid-February this year rose 28.7% compared with the previous day.Guo Jian and Wang Haohao, natural gas analysts at Zhuochuang Information, both told that the surge in domestic LNG prices was mainly due to the significant cooling in a large area of China after the Spring Festival, and the increase in LNG purchases by urban combustion companies.In addition, downstream enterprises resumed work after the Spring Festival, and industrial gas consumption increased, causing supply tightness in some areas.On February 22, “wet snow” hit northern Yunnan, Guizhou, Hunan and northwestern Jiangxi, with snowfall reaching the magnitude of blizzard in some areas.The strongest period of this round of rain and snow was from 8 am On February 22 to 8 am on February 23, and is expected to basically end on February 24, the NMC said.In Wang’s view, limited supply at some domestic LNG terminals is another factor supporting higher prices.”Some major suppliers have recently reduced LNG supplies to terminals.”Wang Haohao said that the overall domestic LNG resources are more sufficient, not enough to support the current high price.State Construction also said that this winter domestic gas supply is fully prepared, the supply situation is relatively optimistic.The cooling brings about a period of high LNG prices, which reminds us that China’s gas storage and peak adjustment capacity still needs to be improved.Data from the China Natural Gas Development Report (2021) jointly released by the National Energy Administration and other institutions show that by the end of the heating season in 2020, China’s gas storage capacity was about 23.4 billion cubic meters, accounting for 7.2 percent of total natural gas consumption, 2.9 percentage points higher than 2015, but still lower than the world average of 12 percent.The company expects LNG prices to fall as temperatures rise.LNG prices in northwest China started to fall on February 24, according to data from Zhuochuang and Lonzhong Information Monitoring.Among them, Inner Mongolia fell 200 yuan/ton that day.”It remains to be seen whether the decline is sustained.”In Wang haohao’s view, domestic LNG has not formed a large-scale price reduction trend, north China and other regions are still strong prices.Recently, affected by the worsening situation between Russia and Ukraine, European natural gas prices have also continued to rise.Dutch TTF3 futures, a bellwether for European gas prices, rose 9.6% to 87.45 euros per megawatt-hour, or $1,022 per thousand cubic meters, on Feb. 23.