NATGAS: China’s Natgas Prices Fell to 5-Year Low: Platts

Chinese domestic natural gas prices fell to their lowest levels in five years as of 17 December, even dropping below the already weak seasonal rates seen earlier this year, Platts said. 

• North China prices slid to Yuan 3,800/mt, while East China fell to Yuan 3,820/mt, marking the steepest winter decline in half a decade.
• High coastal inventories and a surge of cargoes were cited as the main reasons for the drop. Industrial demand has remained weak, while temperatures in North and East China are higher than average, further reducing consumption.
• Domestic production has stayed strong, with November output rising 5.7% year-on-year to 21.9 Bcm, exacerbating oversupply. The manufacturing and real estate sectors continue to drag on demand.
• West China saw similar declines, with LNG prices dipping below Yuan 3,700/mt amid high inventories and transport disruptions caused by snowfall.
• Despite a lower February JKM at $9.43/MMBtu, import activity remains limited due to ample domestic supply and low margins.