Jiangsu Chengsen Jiaze Energy Technology Co., Ltd.

Due to the severe supply and demand situation of natural gas, CNPC has twice increased the LNG gas prices in Shaanxi and Inner Mongolia.
According to relevant media reports, starting from November 1, CNPC's natural gas prices for LNG (liquefied natural gas) plants in Shaanxi and Inner Mongolia will be raised to 1.88 yuan/cubic meter, which is the second price increase since September.
A official document from the representative office of West China Petroleum and Natural Gas Sales Co., Ltd. in Mengxi said that in November, China began to fully centralize heating, and the contradiction between supply and demand was prominent. CNPC increased its purchase price to make up for the shortfall. Under the condition of satisfying the city gas supply as much as possible, it can not fully meet the demand of LNG plants in Shaanxi and Inner Mongolia.
In fact, due to the strong growth in natural gas consumption demand, in early September, the LNG plants in Inner Mongolia, such as Acer Yijitai, received a gas source limited-air notification, and the air-conditioned capacity would reach one-third by mid-to-late. The winter 2017 natural gas supply situation is inevitable.
Liu Chaohui, an information analyst, told the "Securities Daily" reporter that during the peak period of natural gas, for LNG market supply or due to limited supply, the LNG plant's air supply to the pipeline will be reduced or reduced, while the LNG receiving station will increase gas supply. The amount of natural gas supplied to the natural gas market will increase. As the LNG receiving stations and factories reduce the market supply due to supply guarantees, LNG market prices will continue to rise, and the rising trend will extend to February 2018. It is expected that the increase will exceed 10%. %.
In fact, due to the strong demand for natural gas since this year, it is an indisputable fact that the supply and demand situation of natural gas is grim this winter and next spring.
A few days ago, the National Development and Reform Commission issued the "Notice on Accomplishing the Work of Natural Gas for Peak Winter Work in 2017" (hereinafter referred to as the "Notice"). It is expected that during the peak winter period, the demand for natural gas will continue to be strong, and the natural gas supply and demand situation will be severe. In case of continuous cold weather, the contradiction will become even more prominent. PetroChina, Sinopec, CNOOC and other companies should optimize their mining plans, reduce pressure and increase production while ensuring safety, and strive to increase domestic natural gas production during the peak winter period compared with the same period last year.
In 2017, the growth rate of China's natural gas consumption rebounded, and the growth of LNG downstream demand was even more alarming. The annual LNG prices were generally higher than in the past two years.
Relevant information estimates that the demand for LNG market in 2017 is expected to exceed 18 million tons, which is an increase of 31% from 2016. Under the strong growth in demand, there is a supply gap in some regions in winter, driving the price to rise strongly.
In particular, since September 1, 2017, PetroChina, Sinopec and CNOOC have successively launched pipeline gas/LNG online bidding transactions at the Shanghai Oil and Gas Trading Center to promote the marketization of natural gas prices. In addition to accelerating downstream demand growth, coupled with the advent of the heating season, downstream users are actively bidding online, and online transaction volumes are sold at high prices.
The hot conditions of this bidding transaction directly reflect the supply and demand pattern of the natural gas market in 2017 in winter, and the most direct impact is the increase in the prices of non-resident gas users (gas companies, LNG plants, etc.).
Analyst Han Xiaoqing also told the “Securities Daily” reporter that it is expected that there will be different levels of lack of gas in northern China this winter and next spring. Due to the surge in demand from "coal to gas" and the impact of infrastructure constraints, the supply gap in North China is the largest. At the same time, in order to ensure the stability of the supply system for the Shaan-Jing system, there will also be different degrees of restriction in Shaanxi and Inner Mongolia within the gas supply area of Changqing Oilfield. In line with the principle of protecting people's livelihood, the supply of natural gas to fertilizer projects and the supply of raw gas to LNG production projects bear the brunt.