17 February 2014 10:13 [Source: ICIS news]
SINGAPORE (ICIS)--Four LNG producers based in Shaanxi province, northwest China, are planning to increase their prices by yuan (CNY) 100-200/tonne on 18-19 February as their inventory was falling and demand was improving, company sources said on Monday.
The four producers are Xi’an City Xilan Natural Gas Group, Shaanxi Zhongyuan Green Energy, Shaanxi Yanchang Petroleum (Group) and Huanghe Mining, which have a combined liquefaction capacity of 6 million cubic metres (mcm)/day.
The traded prices of LNG from these producers will be adjusted up to CNY4,000-4,200/tonne on ex-works basis after the hikes, the sources said
The decision to increase prices was mainly attributed to improving sales in line with rebounding downstream demand from 14 February, the sources said.
The average LNG inventory fell to the medium level of capacity.
These producers will eventually be able to make some profits after the price hikes, said the sources, adding that their margins were almost zero in the past.
However, a few producers in the province chose to be on the sidelines, maintaining a cautious attitude, as they still recorded higher inventory levels and the road traffic of major expressways in Shaanxi was still affected by weather conditions, said the sources.
There are seven operational LNG plants in Shaanxi province, with a combined liquefaction capacity of 9.5mcm/day.
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