China’s LNG prices to firm in July on strong demand, tight supply

19 June 2013 07:26  [Source: ICIS news]

SINGAPORE (ICIS)--Prices of domestically produced liquefied natural gas (LNG) in China are expected to firm in July as supply cannot catch up with robust demand, LNG suppliers based in north and northwest China said on Wednesday.

Domestic LNG producers such as Ordos Xinsheng Natural Gas Development, China Natural Gas and Ningxia Hanas Natural Gas are expected to restart their liquefaction units with a combined capacity of 4.25 million cubic metres (mcm)/day by the end of June, according to data compiled by ICIS C1 Energy

However, the gains in supply due to the restarts will be offset by the shutdown of several other facilities.

Producers including Shaanxi Yanchang Petroleum, Xi'an City Xilan Natural Gas Group, Dazhou Huixin Energy and Ordos Xingxing Energy plan to shut a total of 3.5mcm/day of liquefaction capacity for maintenance between late June and early July,  ICIS C1 data showed.

Although a few newly-built LNG plants are scheduled to come on stream in July, no commercial supply will be available in the near term.

Meanwhile, the domestic trading market will continue to be active and demand from the road transportation sector for LNG as vehicle fuel is booming, the suppliers said.

By: Jane Han

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