China’s LNG producers to raise prices on robust demand

29 November 2012 09:07  [Source: ICIS news]

SINGAPORE (ICIS)--Chinese producers of liquefied natural gas (LNG) are planning to increase their EXW (ex-works) prices by yuan (CNY) 100-150/tonne ($16-24/tonne) in December in view of rising demand and tight supply, most company sources said on Thursday.

Shanxi Yigao, for example, has raised its LNG offers by CNY150/tonne to CNY4,050-4,100/tonne for December delivery from its 900,000 cubic metre (cbm)/day liquefaction plant at Jincheng in Shanxi province, market sources said.

Shanxi Yigao is China’s third largest LNG producer in terms of output volumes as of October this year, according to data compiled by C1 Energy, an ICIS service.

China’s LNG trading market has rebounded as a result of declining domestic supplies in line with limited availability of natural gas supplied to liquefaction plants in some regions, said LNG producers based in Shaanxi and Ningxia.

Meanwhile, downstream demand is on an upward trend because of falling temperatures in China, the producers said.

However, a few LNG producers based in Inner Mongolia are saving stocks in case of supply reduction from upstream gas suppliers in December, a company source said.

($1 = CNY6.22)

By: Rebecca Qian

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