LNG supply tightens in some Chinese regions on heavy snow

05 November 2012 07:59  [Source: ICIS news]

SINGAPORE (ICIS)--China has seen supply shortages of liquefied natural gas (LNG) in Shandong, Hebei and Henan provinces since 2 November as many delivery trucks were trapped by heavy snow or snowstorms, sources familiar with the situation said on Monday.

LNG producers based in Inner Mongolia and Ningxia Hui autonomous regions were unable to sell out their LNG as a result of traffic jams at the Yinchuan-Qingdao expressway, which is the artery for LNG transportation, said several LNG suppliers based in northwest and north China.

However, LNG sales in Tianjin municipality, Shanxi, Henan, Hebei and Shandong provinces were boosted by falling supplies from Inner Mongolia and Ningxia, a north China-based LNG supplier said.

“Some producers raised their prices by yuan (CNY) 200-300/tonne ($32-48/tonne) in view of shrinking supplies in these regions,” the supplier said.

Henan Zhongyuan Green Energy High-Tech, for example, hiked its LNG ex-works offer to CNY4,300-4,350/tonne on 5 November, versus CNY4,050-4,100/tonne on 2 November, the supplier added.

The supply shortages in those regions are expected to ease from 6 November, as it takes at least one day for LNG trucks to arrive at their target markets, although the traffic jams had been cleared on 4 November, the supplier went on to add.

($1 = CNY6.25)

By: Jane Han

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