China Fights Rising LNG Prices
China News
January 18, 2006
The National Development and Reform Commission (NDRC), China's top economic planning body, recently issued a notice in order to fight surging liquefied natural gas (LNG) prices.
According to the notice, gas producers are not permitted to raise their factory prices of LNG by themselves. Local governments can make some measures to adjust the LNG prices when the prices fluctuate beyond the normal range.
Some regions have begun to suffer gas shortage since last September, including Guangdong, Hainan, Guangxi, Fujian, Shanghai, Jiangsu, Shandong and Henan. Along with rising gas demand, short gas supply has driven the LNG prices up sharply. Some households are even turning to coal for cooking and heating when gas costs too much.
China has to satisfy about one third of the nation's total gas consumption by import. But the LNG prices in the global markets have been driven up by soaring crude oil prices worldwide these days.
Posted by Arthur Caldicott on 20 Jan 2006