According to the monitoring data of SunSirs, the average ex-factory price of domestic LNG was 4,710 RMB/ton on January 1, and 6,060 RMB/ton on December 31. In 2022, the overall price of domestic LNG rose by 28.66%, with the highest price of 8,446 RMB/ton and the lowest price of 3,866 RMB/ton.

In 2022, the overall price of domestic LNG rose. There were two rapid and sharp increases in the whole year. In February and December, the price exceeded 8,000 RMB/ton. October to November fell sharply, and other months were dominated by shocks and consolidation. In 2022, the domestic LNG price was the highest in the past three years. The largest increase in domestic LNG in 2022 was in February, with an increase of 113.83%. The largest drop in the year was in October, with a drop of 18.93%.

Production capacity: The total domestic LNG production capacity in 2022 was 37.78 million tons, an increase of 12.47% compared with 33.59 million tons last year. In 2022, the total domestic LNG output was 18.51 million tons, an increase of 10.57% compared with 16.74 million tons last year. In 2022, the downstream consumption of liquefied natural gas in China was 25.94 million tons, down 29.72% from 36.91 million tons last year.

Downstream consumption changes: In 2022, the downstream demand of LNG market was mainly in transportation gas, industrial gas, urban gas and other industries. Among them, transportation and marine gas accounted for 50%, and overall consumption decreased slightly. As industrial gas was gradually replaced by pipeline gas, the demand for industrial gas has decreased significantly, accounting for 24%. The proportion of urban gas consumption increased to 23%.

According to SunSirs LNG analysts, the domestic LNG price in 2022 was at the highest level in the past three years due to the rising price of raw gas and the strengthening of cost support. In 2022, the production of domestic LNG capacity increased. Due to the limited supply of feed gas, some new capacity will not be put into production on schedule. It is expected that the domestic LNG production capacity will continue to increase in 2023, and the price may continue to be high and volatile.

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