Skip to content

China’s Gas Prices Surge to Record as World Grapples with Shortage

  • National average price surged to record of $27.5/mmbtu: SHPGX
  • Jump in domestic rates may spur procurement of spot LNG
Updated on

China’s domestic liquefied natural gas price surged to a record on frigid temperatures, a scenario that may spur its importers to snap up cargoes from the spot market and further tighten global supplies.

The national average price for the fuel, carried by trucks to factories or vehicle refueling stations, rallied nearly 80% in the last month to a record 8,114 yuan per ton (about $27.5 per million British thermal units) on Tuesday, according to the Shanghai Petroleum & Natural Gas Exchange. Temperatures in Beijing were below the seasonal average from Feb. 12-22 and are forecast to remain frigid through Thursday, according to the latest Global Forecast System model.