29 January 2013 06:06 [Source: ICIS news]
SINGAPORE (ICIS)--Prices of imported liquefied natural gas (LNG) are expected to drop in February on the back of rising supplies of domestic volumes, local traders said on Tuesday.
China National Offshore Oil Corp (CNOOC) Zhejiang Ningbo LNG Trading plans to reduce its offer by yuan (CNY) 450/tonne ($72.20/tonne) to CNY5,450/tonne EXW (ex-works) in February, the traders said, adding that Jiangsu Huagang Gas also plans to cut its prices.
It is a result of increasing domestic supplies from the northern regions such as Inner Mongolia and Shaanxi province because of growing production amid falling demand, market sources said.
Domestic LNG, which was traded at CNY5,300-5,500/tonne DEL (delivered) on 28 January in Jiangsu province in east China, is likely to squeeze the market share of imported LNG, a logistics company source based in east China said.
However, cutting prices will not help to boost sales, considering the current weak demand ahead of the Lunar New Year holiday in the first half of February, the market sources added.
($1 = CNY6.23)
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