In a Turnaround, Buying Overseas Gas to Sell in China Could Be Profitable Again
- Domestic LNG index at highest premium to Asian rate since Aug.
- Colder weather has depleted inventories across northern China
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China’s domestic liquefied natural gas price has rallied to the highest in more than three months, a level that could spur some overseas procurement of the heating fuel.
The surge in prices, which jumped to the highest level since November, has once again made it economically viable to purchase LNG from the international spot market for sale into China, a dramatic turnaround after months of it being unprofitable. It’s also pushed up the premium to North Asian rates to the highest since August, according to data analyzed by Bloomberg.