Surging global LNG prices to inflate Chinese costs, but diversified sources offer relief
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Update time : 2021-08-24 18:52:03
Runaway natural gas prices worldwide, driven by peak demand, an economic recovery from the COVID-19 pandemic and US' loose monetary policy, will inflate Chinese natural gas prices, industry experts warned on Sunday.
However, the impact will unlikely be as bad as that of surging iron ore prices due to China's more diversified import sources and the prevalence of long-term contracts, experts noted.
US natural gas futures, Asian liquefied natural gas (LNG) prices and European natural gas prices have all been rising aggressively since June, promoting media outlets to declare the era of cheap natural gas is over.
East Asia, Europe and the US are the biggest natural gas consumers.
In the first half of 2021, China's natural gas imports reached 59.82 million tons, up 23.8 percent from the corresponding period last year. The import value rose 9.5 percent to 136.24 billion yuan ($20.95 billion), according to official data.
A research note by industry portal chem365.net said that much of the increase came from LNG and the average price of LNG imports rose 39 percent year-on-year, citing its survey of China's LNG receiving facilities.
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