China’s imported LNG traders raise spot prices in domestic market

12 December 2012 10:52  [Source: ICIS news]

SINGAPORE (ICIS)--Chinese traders of imported liquefied natural gas (LNG) have raised their prices for sales on truck delivery in early December in view of a domestic supply shortage, several traders said on Wednesday.

Shenzhen Dapeng LNG Marketing raised its offer for spot LNG supply beyond the monthly quota to yuan (CNY) 3.9/cubic metre (cbm) ($0.62/cbm), or CNY5,273/tonne, a company source said.

The company is a trading arm of China National Offshore Oil Corp (CNOOC) and sells imported LNG from Dapeng terminal to domestic consumers via trucks.

Meanwhile, Jiangsu Huagang Natural gas increased its December price for truck-delivered LNG to CNY3.65/cbm or CNY5,147/tonne on 11 December, from CNY3.6/cbm or CNM5,076/tonne on 10 December, a company source said.

The company also set its out-of-quota offer higher at CNY3.9-4/cbm or CNY5,499-5,640/tonne.

“We have seen increasing LNG sales to a dozen of trucks per day recently, instead of seven to eight before, as many domestic LNG buyers have turned to imported volumes in line with falling domestic supplies,” the source added.

Jiangsu Huagang Natural Gas is largely engaged in the truck-delivered distribution of LNG imported from PetroChina’s Rudong terminal.

Most Chinese traders of imported LNG, such as Shenzhen Dapeng LNG Marketing, will distribute LNG volumes to their customers in accordance with a certain quota which has been set in the previous month upon request. Supplies beyond the quota will be offered with higher prices.

($1 = CNY6.25)

By: Ricki Wang
+65 6780 4359

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