On August 4, 2013, media reporters learned from market monitoring agencies that the latest raw material gas price agreements reached between the Shaanxi and Inner Mongolia LNG plants and CNPC Changqing Oilfield indicated that the air source price increase rate was only around 27%. The CNPC insiders also confirmed that the above agreement has been reached.

Analysts believe that the increase in the price of PetroChina LNG will help ease the sentiment of LNG processing plants and downstream users, and stabilize the gas consumption of downstream gas plants and LNG refueling stations.

Zhu Hui, an information analyst with Ma Hui, told the reporter that at present, the gas source prices in Shaanxi and Inner Mongolia LNG plants have been determined at 1.8905 yuan per cubic meter, up 0.4 yuan per cubic meter, and the price increase rate is 27%.

CNPC insiders also said that previous news that the 100% increase is lack of feasibility, so the price increase in Inner Mongolia and Shaanxi is lower than expected. At present, although CNPC did not formally announce the LNG gas source price, the source price of 1.8905 yuan per square meter in Inner Mongolia and Shaanxi has basically been true. This news has made LNG downstream companies breathe a sigh of relief.

Affected by previous market rumors that the price of LNG raw gas rose by more than 100%, the ex-factory price of LNG plants has already risen excessively, and the retail price of LNG refueling stations has risen steadily.

Zhuo Chuang Wang Xiaokun, an information analyst, believes that LNG has a tendency to rise, and the affordability of downstream companies also seems to have reached the limit.

Affected by the sluggish economic environment, the current operating profits of various industries are relatively weak. When China Petroleum's factory executes the highest price, the comparative advantage of LNG will be severely weakened. In the later period, if the price of LNG gas is significantly raised, the process of “coal to gas” and “oil to gas” will be pushed back or stagnated in varying degrees.

This time, the price is determined LNG sources, the cost of filling up 0.5 yuan / kg, in substantially within an acceptable range. It is reported that the Shaanxi LNG Industry Association is actively coordinating LNG manufacturers, and will convene a liquefaction plant to discuss the final price to the downstream before August 15.

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