[Epoch Times October 02, 2021]According to reports, LNG prices have risen recently, but mainland buyers are still buying at higher than market prices to supplement the shortage of natural gas before the winter.
According to a Reuters report, the spot price of LNG in Asia soared to a historical high of US$34.47 per million British thermal units (mmBtu) on Thursday (September 30), an increase of more than 500% over the same period last year. Under normal circumstances, when spot prices soar, price-sensitive Chinese buyers will avoid buying from the spot market. However, some traders said that last week (20-24), Sinopec’s trading arm, United Petrochemical, sought 11 shipments of liquefied natural gas cargo for the winter, and the number of purchases may exceed its requirements.
Some trade sources say that other Chinese giants, including China National Offshore Oil and PetroChina, are also seeking cargo for winter delivery.
A LNG trader in Singapore said: “Chinese buyers have been asking about and buying cargoes for winter, and the bids are higher than the market price.”
“China certainly does not have enough natural gas to survive the winter.” Singaporean traders said.
According to sources, the current international natural gas price is about twice the mainland price.
Editor in charge: Liu Yi
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