CHINA TO ADJUST ENERGY STRATEGY TO COPE WITH GROWING LNG PRICE
BEIJING, Aug 18, 2008 (AsiaPulse via COMTEX) —
China will probably adjust energy strategy to cope with the situation that the LNG price is expected to surpass oil price soon.
According to the supervision data from the Ministry of Commerce of China, energy price on August 4-10 dropped by 0.7 per cent from the previous week with oil price and LNG price down 1.8 per cent and 1.1 per cent, respectively. The oil price and LNG price in the week (July 28 to Aug. 3) decreased, respectively, by 2.0 per cent and 1.2 per cent from the previous week. This has signified smaller differentiation between the oil and LNG price with smaller decrease of the latter one.
The growing consumption of LNG supports the price hike of LNG. According to BP, the global consumption of LNG surged by 3.1 per cent, 3 times the increase of oil consumption.
Besides, lower carbon dioxide release of LNG than crude oil and coal makes LNG very popular in many countries.
Therefore, LNG price is expected to surpass oil price with its ascending position in global energy market and growing demand on Asian and European markets, according to energy ministers of many countries and specialists.
Cambridge Energy Research Association estimated that LNG price might increase to 730 U.S. dollars per cubic meter in April 2009 from 350 dollars per cubic meter at the beginning of this year.
The global price hike of LNG imposes greater pressure on China’s LNG import. It is suggested that China should involve in the market once the LNG price falls back.