China's LNG market saw an improvement in both supply and demand in July, underpinned by production resumption of LNG plants and rising imports, coupled with growing electricity consumption due to high temperatures in South China, learned from OilChem.
Domestic plants produced nearly 1.80 million t of LNG in July, an increase of 6.45% compared to June, data from OilChem showed, primarily due to LNG plants resuming the production from overhaul. At the same time, imported LNG arrivals increased slightly as some newly-built terminals were preparing for shipment.
On the other hand, domestic LNG consumption jumped 3% to 3.01 million t, bolstered by stock replenishment among storage tanks for emergency and peak-shaving purposes in Central China's Hunan and Hubei provinces, as well as growing electricity demand due to high temperatures in South China.
Separately, domestically-produced LNG sales increased steadily for more attractive prices, while imported LNG sales reduced as the port terminals were closed from time to time in South China due to the typhoon, thus lifting the share of domestically-produced LNG.
Data from OilChem showed that domestic LNG factories sold a total of 1.76 million t of LNG in July, edging up 5.54% from last month, whilst LNG sales volume by truck at coastal terminals dropped 0.39% to 1.25 million t.
The average price of domestically-produced LNG stood at Yuan 3,947/t in July, up 2.49% MoM, in view of unit maintenance and rising feed gas prices, while imported LNG ex-terminal prices dropped 0.42% to Yuan 4,305/t, as the typhoon in South China weighed on the demand.
China LNG Market Supply and Demand
Source: OilChem
Sales of Domestically-produced LNG and Imported LNG
Source: OilChem
Prices of Domestically-produced LNG and Imported LNG
Source: OilChem
Written by Sunny Fang, fss@oilchem.net
Edited by Aggie Hu, huchenying@mysteel.com