Chinese gas firms are seeking ways to pass on high LNG import costs to customers despite the country’s price regulations aimed at putting inflation under control and protecting critical sectors such as winter heating and residential use. PetroChina’s CFO Chai Shouping said his company planned to sell spot cargoes based on market prices to help minimize losses. Meanwhile, city gas distributors in Shandong provinces are recently allowed to sell their spot LNG cargoes at market prices to non-residential customers.
Data from the National Development and Reform Commission showed China’s gas demand was up 3.9% from July to 29.47 Bcm in August. Meanwhile, domestic output rose slightly 0.6%, while imports jumped 11.8% over the same period. China imported 14.4 Bcm of natural gas in August, which met 49% of its overall gas demand in the month. In the first eight months of the year, China consumed 240.62 Bcm of natural gas. That represents an increase of 16.8% from a year earlier, which is slower than the 17.1% gain seen in the first seven months.
