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Chinese liquefied natural gas (LNG) prices have slipped from record highs as the industrial users were cut off the supply and turned to cheaper LPG and coal.
Reuters cites Li Ruipeng, manager at Tangshan Huapu Gas Co a company delivering liquefied natural gas via trucks, as saying that some industrial users were unable to afford the LNG as it reached 9,750 Yuan ($1,500) in Inner Mongolia region.
Since December 24, the prices have dropped over 40 percent according to the data from the industry publication yeslng.com, Reuters reports.
The prices dropped as China’s National Development and Reform Commission (NDRC) ordered state-owned companies to cut gas supplies to industrial users by 15 million cubic meters per day. In addition, the prices of domestically produced fuel also had a major impact on the price drop.
Not only were the industrial users turning away from natural gas but even residential users opted for cheaper liquefied petroleum gas or coal.
The NDRC has also informed that the supply of natural to North China was boosted by diverting some 14 million cubic meters of gas per day from the south.
1 CNY = 0.153929 USD
LNG World News Staff