19 December 2012 06:05 [Source: ICIS news]
SINGAPORE (ICIS)--Liquefied natural gas (LNG) prices have been rising in east China’s Shandong province since 14 December as a result of supply shortage caused by transport interruptions due to inclement weather, market sources said on Wednesday.
The average price of LNG was yuan (CNY) 5,450/tonne ($871/tonne) on 18 December in Shandong, versus CNY5,100/tonne on 14 December, according to data compiled by ICIS C1 Energy.
The entire Shandong’s LNG consumption is trucked from other regions - mostly from north and northwest China - after Shandong Tai'an Natural Gas on 30 November took off line the only liquefaction plant in Shandong, the sources said.
However, a large number of LNG tank trucks were stuck on their way as the Shandong government shut many expressways in view of rainy, snowy and foggy conditions on 13-15 December, said a north China-based LNG supplier.
Therefore, LNG supply in the local market declined significantly and many LNG-refuelling stations were forced to shut their businesses, the supplier said.
LNG prices in Shandong are likely to stabilise in the near term, as supply gradually eased from 16 December when the local government re-opened some roads, according to the supplier.
Shandong province consumes about 1,100 tonnes/day of LNG, making up 13% of the country’s current total LNG outputs per day, ICIS C1 data showed.
($1 = CNY6.26)
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