Asia has been eager to natural gas demand, once the natural gas producers on the Asian countries market rush. Today, this situation has changed under the change in supply and demand.

Data from An Xunsi show that at the end of November, the spot price of LNG in East Asia was close to the same period last year.

In the case of slow demand, the domestic LNG (liquefied natural gas) production capacity has been rapid growth has affected the entire industry, domestic LNG in 2015 will be oversupply situation.

The above effects began to appear this year. This year, some domestic LNG factories began to suffer losses, some LNG factory simply shut down, even Sinopec also began to seek to sell LNG long. With the continued decline in oil prices, the future LNG prices will decline, the domestic LNG plant profits worrying.

Asian LNG prices fell four percent year on year

Since 2014, by the mild climate and economic downturn two factors, the global LNG market suffered an impact, oversupply situation led to the price has been low in the hovering.

An Xunsi data show that the end of November, An Xun Si East Asia LNG spot price index (EAX) in January CIF price of 10.525 US dollars / million British heat, while the same period last year for 18.863 US dollars / million British hot, Down 44%.

An Xunsi natural gas industry analyst Wang Ruiqi told the "Daily Economic News" reporter, as the main demand side of Asian LNG, China, Japan and South Korea on the slowdown in demand is the main reason leading to price decline.

"LNG spot demand, China, Japan and South Korea accounted for about 90% of demand, including Japanese companies LNG spot demand accounted for about 70% of the Asian region." Wang Ruiqi told reporters, "this year, Japan has been very mild weather, the whole Electricity consumption fell by 3.7% compared to previous years, and in the continued decline, there is still no signs of stabilization.

In the Zhuo record information analyst Wang Xiaokun view, the restart of nuclear power in China and Japan have also suppressed the natural gas power generation. In addition, the decline in crude oil prices also have an impact on LNG prices. "Crude oil and LNG in many ways are alternative energy, so the continuous decline in oil prices also directly affect the Asian LNG market price." Wang Ruiqi told reporters.

Sinopec wants to get around

In the case of the gradual reversal of supply, LNG in the country began to shift from the seller's market to the buyer's market. As the most important domestic LNG production provinces, Shaanxi Province, LNG factory profits worrying, high turnover rate.

Shaanxi Province, liquefied natural gas industry association secretary-general Ma Yanming had said in an interview, since mid-May this year, liquefied natural gas plant appeared a collective shutdown phenomenon, the average operating rate of liquefied natural gas plant in Northwest China was reduced to below 40%, Shaanxi The province's liquefied natural gas plant operating rate is down to below 30%.

"According to our statistics, the current half of the upstream factory there is a loss." Wang Xiaokun told reporters, "we observed an LNG factory, since the end of 2013 has been completed, but until now did not start production.

An LNG factory sales person in Shaanxi, who declined to be named, told the Daily Economic News reporter that LNG prices have been declining this year, compared with the beginning of the year, the average price of the Northwest LNG market has fallen by more than 700 yuan / tonne , The current price of 5,000 yuan / ton.

LNG market downturn, making the natural gas leading enterprises China Petrochemical Corporation (hereinafter referred to as Sinopec) also could not contain, seeking to sell its signed LNG agreement.

According to Reuters, Sinopec is seeking to sell a portion of the LNG long-term purchase contract to BP. The contract is scheduled to start in 2015 for a total period of 20 years, the annual purchase of 4.3 million tons of LNG to Australia, and now Sinopec in 2016 and 2017 each year to BP (BP) to sell up to 1 million tons of the project LNG The The average spot price for LNG in Asia was $ 14.8 per million British heat, and now less than $ 10 per million.

An Xun Si Energy Research Center Director Li Li analysis that Sinopec's action may be out of the price and market two considerations, "this year the domestic LNG prices fell a lot, sold to higher prices in the region to profit more, But also to avoid the problem of domestic LNG surplus.

Li Li believes that with the continued decline in crude oil prices and domestic demand for LNG slowdown, is expected to continue LNG prices will continue to decline.