PetroChina PNG contract transfer prices surge, despite off-peak season

At its monthly PNG contract transfer auction held on April 15 at the Shanghai Petroleum and Natural Gas Exchange (SHPGX), transaction prices came in well above market expectations, with East China transfer prices hitting Yuan 4-4.5/cubic meter representing a premium of up to 52.9% against the prevailing long-term city-gas contract prices in Jiangsu.

PetroChina pipeline natural gas (PNG) contract transfer prices posted unexpected gains as tight supply and a demand shift from LNG to PNG combined to drive up auction prices. On April 15, PetroChina held its monthly PNG contract transfer auction at the Shanghai Petroleum and Natural Gas Exchange Center (SHPGX), with