China slashes natural gas prices by 30%
LNG exporters will welcome the return of a major buyer, while domestic producers will be less happy with the change.
City-gate gas prices for non-residential users will fall from $11.55/m British thermal unit (Btu) (yuan 2.51/m³) to $8/m Btu from 20 November, according to the National Development and Reform Commission (NDRC), China’s top economic planner. China will also improve the market mechanism by allowing buyers and sellers to negotiate prices within a 20% range of the base price. But for the first year only downward revisions will be allowed. This flexibility could result in overall cuts as large as 50%, said Neil Beveridge, an Asian-focused gas specialist at research house Bernstein. The NDRC also plans to improve the transparency of non-residential gas prices by encouraging sellers and buyers to u
Also in this section
21 February 2025
While large-scale planned LNG schemes in sub-Saharan Africa have faced fresh problems, FLNG projects are stepping into that space
20 February 2025
Greater social mobility means increased global demand for refined fuels and petrochemical products, with Asia leading the way in the expansion of refining capacity
19 February 2025
The EU would do well to ease its gas storage requirements to avoid heavy purchase costs this summer, with the targets having created market distortion while giving sellers a significant advantage over buyers
18 February 2025
Deliveries to China decline by around 1m b/d from move to curb crude exports to Shandong port, putting Iran under further economic pressure
