China's Domestic LNG Price Drops to Five-Year Low Amid Weak Demand and High Inventories
China's domestic liquefied natural gas (LNG) prices have dropped to a five-year low, falling below 3,500 yuan per ton due to weak winter heating demand and high inventory levels, which are currently 73% full. This decline contrasts with typical winter price trends, as mild temperatures and a sluggish industrial recovery have kept demand low, while increased piped gas imports and recovering seaborne LNG shipments have further pressured prices.
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China's domestic liquefied natural gas (LNG) price has fallen to a five-year low, dropping below 3,500 yuan per ton ($10.72 per million British thermal units) at key importing terminals, according to SCI99 data. This decline is attributed to weak heating demand during winter and growing inventories, with tanks reportedly 73% full as of December 19.
Unlike typical winter trends where prices rise due to increased demand, mild temperatures and a slow industrial recovery have contributed to lower prices this season. Additionally, seaborne LNG shipments began to recover in November, although cumulative volumes remain below last year’s levels. Piped gas imports have also increased, leading terminal operators to reduce stockpiles at lower prices.
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