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Liquefied Natural Gas Prices Continue To Rise
Feb 26, 2018

The price of liquefied natural gas (LNG) fell nearly 20 per cent during the Spring Festival period and began to rise as demand rose after the festival.

Commodities analyst group long the petrochemical, according to data from xinjiang liquefied natural gas (LNG) development co., LTD. (hereinafter referred to as xinjiang), and other domestic LNG liquid factory factory on February 24 listing price appeared are on the increase.

Among them, xinjiang guanghui was up 200 yuan/ton on the previous day, and the group, shaanxi baosteel and ordos coal were raised by 300 yuan/ton, while shanxi energy and cangzhou were up 500 yuan per ton.

The benchmark price of the LNG on February 23 was 5,590 yuan/ton, up 2.43 percent from the previous day.

Feng haicheng, an information gas analyst at zhuochuang, said that after the Spring Festival, the recovery of industrial users in the downstream industry and the logistics and transportation capacity have kept the price of LNG rising.

"The factory price of the LNG factory is about 1000 yuan/ton after the holiday."

"This is the LNG price influenced by demand in the short term normal fluctuations," said feng haicheng, "the northwest liquid factory inventories are low, will tend to support the LNG price increases, the rally is still expected to maintain in a short time."

Zhang mengjie, a natural gas analyst at longzhong petrochemical co., also believes that after the Spring Festival holiday, the demand for the lower reaches is much higher than the Spring Festival holiday, which is the main reason for the LNG price.

"Logistics service during the Spring Festival, the downstream industry high end users due to the first LNG prices, holiday shutdown, decrease in demand for LNG, plus the LNG plant active inventory, before the Spring Festival LNG prices."

On February 14, the average price of LNG in China was 6362.5 yuan/ton, and the average price of LNG has dropped to 5112.5 yuan/ton as of the last day of the Spring Festival holiday (February 22), with a decline of about 19.65 percent, according to data from longzhongpetrochemical network.

"Downstream end users centralized replenishment after the Spring Festival, liquid factory shipment smoothly and trading atmosphere overall have improved significantly during the feast, combined with the northwest, Inner Mongolia and other regions surrounding market prices rise, these areas conveniently rising prices, short-term upside."

Jin lianchuang analyst miao yingying said to the interface news reporter.

In her view, as the heating season draws to a close, demand for urban gas will be reduced and industrial users' demand for natural gas will rise steadily, and LNG prices will return to normal levels.

"As long as the gas source in central Asia is stable and there are no special conditions such as pressure reduction, the phenomenon of 'gas shortage' will not appear again in the short term," he said.

"Said miao yingying.