Price trend
As of March 9, the average price of LNG in China was 5,304 RMB/ton, which was 10.86% lower than the average price of 5,950 RMB/ton on March 3.
Analysis review
Domestic market: domestic LNG prices continued to fall this week. This week, the domestic temperature gradually picked up, the demand for LNG (LNG) market decreased, and the LNG plants reduced their prices in succession, and the bearish attitude in the market increased. With the convening of the recent important meeting, some downstream enterprises stopped production and reduced industrial demand. There were many parking in the market, and terminal demand continued to be weak. In terms of imported LNG, LNG prices in some terminals fell.
Bidding for feed gas: on March 9, PetroChina was bidding for feed gas in Northwest LNG Plant (March 11-March 20, 2023). The investment volume was 30 million m3, and all transactions were completed. The transaction price was 3.18-3.22 RMB/m3, down 0.59-0.6 RMB/m3 from the previous period.
Market outlook
LNG analysts from SunSirs believe that the terminal demand was weak due to the warming weather recently. In addition to the impact of the reduction in the bidding price of raw gas, the domestic LNG price had been falling. Under the combination of long and short factors, it is expected that the domestic LNG price will continue to decline in the short term.
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