LNG prices continued to fall

Recently, the price of liquefied natural gas (hereinafter referred to as "natural gas") continued to fall. According to the data of the business society, the reference price of natural gas spot on November 17 was 4420 yuan/ton, which has dropped by 18.9% compared with 5450 yuan/ton on November 1. Looking at the time line, it is the 24th consecutive natural day since October 24 that has experienced a decline. If we calculate it at 6330 yuan/ton on October 24, the cumulative decline has been 30.17%. Ye Yindan, a researcher at the Bank of China Research Institute, said in an interview that adequate upstream gas supply, declining natural gas demand and high domestic average temperature in recent years were the main reasons for the recent continuous decline in natural gas prices. Ye Yindan introduced that from the supply side, the domestic natural gas reserves were sufficient this winter, and the natural gas reserves of the two major suppliers reached a new high. The market as a whole was in a state of oversupply. In addition, since this year, the supply of natural gas along the eastern route between China and Russia has steadily increased. In addition, a large number of long-term natural gas has recently landed. In order to ensure winter supply, domestic natural gas suppliers have implemented more resources internationally than the same period last year. "On the demand side, since the beginning of the year, due to the influence of the geographical situation, the price of natural gas in the international market has remained high, which has affected the domestic market price and the production cost of downstream enterprises. At the same time, the domestic market has vigorously promoted the price reform, and the terminal price of natural gas has remained high. In addition, the market demand for products has declined, and the gas consumption of some major enterprises such as glass and ceramics has declined, leading to the weakening of the domestic market demand for natural gas 。” Ye Yindan further said that it is expected that after the heating season, the domestic natural gas supply will also increase steadily under the combined effect of various supply guarantee measures, and the pressure of natural gas supply in the whole heating season will be less than that in previous years. In fact, as Ye Yindan said, China has deployed a series of measures to ensure the supply of natural gas recently. The main production units of the natural gas purification plant include pressure regulating and metering unit, desulfurization unit, decarburization unit, dehydration unit and liquefaction unit.