Natural Gas Import to China 15.9% More YOY in First Half 2017

[2017-09-19]

According to China Customs statistics, in the first half of this year, China imported natural gas 31.086 million tons, 15.9% more year-on-year (YOY); worth 69 billion yuan, up 27.5% YOY; average import price at 2219.6 yuan per ton, up 9.9% YOY. For June alone, the import was 5.578 million tons, up 30.6%; worth 12.53 billion yuan, up 55.6% YOY; average import price at 2245.8 yuan per ton, up 19.2% YOY.




The imported gaseous natural gas totaled 15.194 million tons, a decrease of 0.8% YOY, accounting for 48.9%; average import price at 1869.9 yuan per ton, up 1.3% YOY.

The imported liquefied natural gas totaled 15.892 million tons, an increase of 38.3% YOY, accounting for 51.1%; average import price at 2554 yuan per ton, up 13.5% YOY.

More than 80% gaseous natural gas was imported from Turkmenistan, while liquid natural gas was mainly from Australia, ASEAN, and Qatar.

Causes:
With gas supply short in China, growing consumption demand led to the increase in gas import.

Considerations:
1. At present, due to excessive liquefied natural gas, Asian spot market price has fallen 40% this year, while increased production in Qatar and the United States made the gas market competition more intense.
2. China has introduced many favorable policies to support domestic gas market.
3. China is determined to create a regional RMB-denominated gas trading mechanism, so as to consolidate RMB internationalization and Chinese position in gas pricing.

 
Source: China Customs
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