24 July 2012 08:17 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Yongjing Sanxia Natural Gas plans to start the commercial supply of liquefied natural gas (LNG) from its 200,000 cubic metre (cbm)/day plant at Yongjing county, Gansu province, in early August, a company source said on Tuesday.
The producer started conducting test runs at the LNG plant on 12 July, but suspended operations on 15 July as a result of a power outage, the source explained.
“We expect to resume production on 27 July,” the source said, adding that the company has achieved 50% capacity at its 1,500cbm LNG storage tank at the same site.
The plant mainly consumes feedstock gas supplied by PetroChina’s Seibei gas fields in northwest China and its output will be sold nationwide.
Yongjing Sanxia has set its LNG spot offers at yuan (CNY) 3,550-3,600/tonne ($556-563/tonne) EXW (ex-works), the source added.
The LNG commercial supply from Yongjing Sanxia’s plant is expected to fuel the bearish sentiment in the market and may lead to further price declines as the Chinese LNG market is oversupplied, a north China-based LNG producer said.
Spot LNG was traded at CNY4,800-5,200/tonne at the Yangtze River Delta and CNY5,200-5,400/tonne at the Pearl River Delta area, down by CNY50/tonne week on week, respectively.
The Yangtze River Delta and the Pearl River Delta are major LNG consuming regions in China.
Yongjing Sanxia is largely engaged in the production and distribution of LNG as well as the construction of gas networks in Yongjing country.
($1 = CNY6.39)
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