Peak LNG prices rose 111 in mid July

2022-08-10
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In mid July, the price of liquefied natural gas rose by 11.1%

on July 24, the National Bureau of statistics disclosed the market price changes of important means of production in the circulation field in mid July. Compared with the first ten days of July, the prices of 28 products increased, 17 decreased and 5 remained unchanged. Among them, the price of oil and natural gas products generally rose, with the price of liquefied natural gas (LNG) rising by 11.1% and the price of liquefied petroleum gas rising by 3.7%

according to the data released by the national development and Reform Commission, China's natural gas consumption has increased in recent years, from 103.5 billion cubic meters in 2011 to 237.3 billion cubic meters last year. At the same time, the gap between China's natural gas production and sales has expanded year by year. In order to alleviate the contradiction between supply and demand, China has gradually expanded the import of natural gas in recent years. Last year, China's natural gas import volume has reached 92billion cubic meters, with an external dependence of 38.8%. According to foreign experience, when the external dependence of natural gas is 40%, the working gas volume of gas storage should account for 20%, while China currently accounts for only 3.3%

after the middle of May this year, due to the routine maintenance of North China Oilfield and Changqing Oilfield, the two major northern gas fields of PetroChina, LNG supply fell short of demand significantly. In this regard, PetroChina North China company decided to limit gas by 26% nationwide from May 2. At the same time, PetroChina said in an internal document that due to the increase in the number of imported natural gas in recent years, the upside down of purchase and sales prices has a great impact on the overall performance of PetroChina. This April, PetroChina will be able to match the materials to be tested. From April this year, PetroChina will reduce production nationwide to implement the loss reduction plan provided by the state owned assets supervision and Administration Commission of the State Council for the use of high-strength bolt tensile testing machines. This caused the LNG market to change the trend of the same period in previous years, and the price rose sharply in line with the world. Experts predict that LNG prices may continue to rise in the short term

in this regard, the national development and Reform Commission and the National Energy Administration jointly issued the "opinions on accelerating the construction of gas storage facilities and improving the market mechanism of gas storage peak shaving auxiliary services", which proposed that by 2020, gas supply enterprises should have a gas storage capacity of no less than 10% of their annual contract sales. Kong fanqun, general manager of Sinopec Shengli Oilfield Branch, said that with the continuous growth of natural gas market demand, it is urgent to rapidly strengthen China's gas storage and peak shaving capacity. He proposed to refine fiscal and tax preferences, land use, gas storage prices and other policies, attract more enterprises to participate in the construction and operation of commercial gas storage facilities, and speed up the development of commercial gas storage facilities. B0.30

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