LNG consumption showed an uptrend in South China's Guangdong province on the backdrop of falling imported natural gas prices and improving downstream demand post the pandemic, in addition to lower prices compared with other fuels, according to OilChem.
Guangdong LNG Consumption
Source: OilChem
The consumption jumped 25.46% year on year to 409 million cubic meters in August, rising by 6.05% month on month, mainly because LNG prices in Guangdong dropped 5.50% month on month to a 3-year low of Yuan 4,246/t.
2021-2023 Guangdong LNG Prices
Source: OilChem
However, the combined consumption in the first eight months stood at 2.44 billion cubic meters, which was 17.24% lower from prior year, data from OilChem showed, as local LNG prices remained high in the first quarter and the Spring Festival holidays placed a cap on downstream demand.
Compared with LPG and fuel oil, whose prices were Yuan 4,896/t and Yuan 5,304/t respectively on average in August, industrial users in South China were more inclined to use LNG for its attractive prices, and its consumption in industrial sector is projected to increase significantly in Q3 and Q4.
LNG Prices vs Other Fuels
Source: OilChem
Written by Sunny Fang, fss@oilchem.net
Edited by Aggie Hu, huchenying@mysteel.com