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Chinese Spot LNG Prices To Rise During 4Q23

LNG

China’s average buying cost for spot and long-term LNG cargoes is expected to rise until December, but levels are expected to remain below last year, ENN Energy said in a research note.

  • China’s average buying cost for spot and long-term cargoes may rise up to 7% to 4,459 yuan/ton ($13.2/mmbtu) by December, compared with this month.
  • Import costs averaged $17.86/mmbtu in 4Q last year, according to official custom data.
  • Winter replenishment pressure could push the spot rate premium to long-term contracts to 1,403- 2,186 yuan/ton in the October-December period, up from 255 yuan/ton in September.
  • Chinese LNG imports are estimated to have risen by 5% year on year to 6.2mn tons in September.

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