China Gas Report
Guangdong’s gas imports peak in July
China imported 260,000 tons of liquefied gas in July, a surge from 163,400 tons in June this year. The sharp increase was mainly due to soaring imports in Guangdong province, which imported 221,900 tons in July, more than double from June this year. Imports in Zhuhai and Shenzhen in the Pearl River Delta soared. BP Zhuhai Chemical Co Ltd imported more than 80,000 tons of liquefied gas in July, but has no imports records in May and June. Shenzhen also imported more with rise of Hua’an LPG Company’s imports . However, for the first seven months of this year, Guangdong imported a total of 1.12 million tons, down 37.1 percent year on year.
China LPG Import Volume on Provinces
e increasing imports in July can
not reverse the national decrease trend. Despite the imports in July jumped nearly 60 percent month on month, China’s total imports between January and July fell 37.4 percent to 1.52 million tons, down 37.4 percent year on year.
e decline trend will continue in
the coming months of this year. Liquefied gas, whose price followed oil’s, may help recover the import market. But production recovery trend of refineries in the second half year, increased use of alternative fuels and possible oil price rise in the fourth quarter are all negative news for the imported liquefied gas market. e total liquefied gas imports this year are doomed to be much lower than last year.
China LPG Import Sources on Months
July 2003 July 2004 July 2005
The United Arab Emirates
Price falls from the peak with oil price plunge
World LPG price fell in August after robust rise in the past five consecutive months, with oil price plunged from the peak in July the key factor behind the price decline. Cargoes from West Africa and the Middle East are flooded with the European market to arbitrage, bringing down prices. In August, the average propane price in the northwestern Europe fell to $827 per ton from $947 in July. e CIF price of propane in Gulf of
Mexico also fell $110 to $854.
e September contract prices of
propane and butane were $50 and $60 lower respectively to $800 and $840 per ton at Saudi Aramco Petro Company. Influenced by the international oil price drop, prices of China’ s imported and refineries; gas also fell. Domestically-produced gas in East China saw its lowest point of 5,400 yuan per ton, while imported gas in South China
dropped to about 5,700 yuan per ton. ree factors advanced prices: first, Sinopec’s meeting pushed up the price secondly, processing volume impacted LG production expectations; finally, the typhoon deferred imported gas delivery.It is estimated that the average imported gas prices would go down to 6,400 yuan per ton from 7,600 yuan in July, while domestic gas in East China would fall to 5,800 yuan from 7,150 yuan.