China has launched a new price index for liquefied natural gas (LNG) imports to better reflect changes in the market.
The LNG comprehensive import price index (the LNG index), jointly developed by a monitoring center under the General Administration of Customs and Shanghai Petroleum and Natural Gas Exchange (SHPGX), came in at 3,497 yuan (about $494) per tonne over October 7-13, up 3.2% from the week before.
The index will be released on a weekly basis to offer a new pricing reference for importers.
Currently, China's natural gas import pricing is mainly linked to petroleum prices, which cannot reflect the real supply-demand situation in the domestic market, said Chen Ruyi, a senior analyst with SHPGX.
China's appetite for natural gas has swelled rapidly in recent years, in part due to environmental policies to replace coal-fired power generation.
China has become the world's biggest importer of natural gas. Data showed that the country imported 90.39 million tonnes of natural gas in 2018, up 31.9% year on year.
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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