ICIS: East China May See Heavy Inflows of Cheap LNG imports

Eastern China may see an influx of low-cost liquefied natural gas (LNG) imports in the coming months as domestic cargoes are available at much higher prices, industry sources said on Tuesday.

The region will be dominated by imported volumes if the current trend continues, and prices are likely to fall further, the trader said.

Imported LNG prices in China were assessed at $6.98/MMBtu delivered ex-ship (DES) price on 5 February, down by about 65% from the same period in 2014, according to Heren, an ICIS service.

The latest price is equivalent to about yuan (CNY) 3,100-3,200/tonne, significantly lower than the current traded price of LNG in east China.

On 6 February, LNG prices in east China stood at CNY4,880-5,150/tonne, according to ICIS China.

State-run enterprises, including PetroChina, Sinopec and China National Offshore Oil Corp (CNOOC), and private firms are actively looking for spot LNG cargoes in the international market in view of lower prices, industry sources said. MORE