Twenty-first Century economic report "since March, the price of imported LNGFar East has dropped more than 25%, mainly Japan and South Korea twobuyers reduced purchases by July 17th", an importer Zhang Jun (a pseudonym) said: "if this trend continues, then the LNG down channel is formed."

Before 2014, the Fukushima nuclear power plant leak, leading to LNG price far east region has been in a rapid climb, to the end of 2013, Japan JCC price(LNG core prices far east) reached more than $18 per million British thermal units. However, since the increase with the Japan restoration capacity exportnuclear power development and the United States and Australia and otherexporting countries, a quarter of this year after the decline in JCC prices, has recently dropped to $13.8 per million British thermal units.

For Chinese, far east price drop is a huge advantage!

Import prices, will greatly reduce the cost of imports of Chinese, more wintergas shortage to ease played a great role. "This has failed to reform thedomestic natural gas prices, and create a favorable external environment, the central and local governments should seize the opportunity to complete as soon as possible, the gas price reform and the implementation of." SeniorResearch Institute of Sinopec economic development. LNG prices

The latest in July 15th the Japanese government data show, decline of Japanese LNG spot import average price for fourth consecutive months, from March's $18.3 per million British thermal units in June to $13.8 per million British thermal units (about 3 yuan / m3), or as high as 25%.

The latest in July 15th the Japanese government data show, decline of Japanese LNG spot import average price for fourth consecutive months, from March's $18.3 per million British thermal units in June to $13.8 per million British thermal units (about 3 yuan / m3), or as high as 25%.

An index of import prices in Japan, Zhang Jun introduced, because Japan is the world's largest LNG import country, the import price not only affects the economy, but also has a tremendous effect on the LNG import prices to Japan and South Korea and even India and other countries in the far east. "Import prices, Fujian, Shanghai, Shenzhen LNG is to Japan JCC based prices, withdifferent slopes, premium, eventually forming a local import prices." Zhang Jun said.

Because of this, LNG consumption in Japan to the Far East has a strongleading role.

In 2011, due to the leakage of nuclear power plant in Fukushima, Japannuclear power generating capacity sharply, with LNG as raw material gas electric climbing fast, resulting in Japan LNG imports rose sharply, import prices are beginning to rise -- from the initial $10 per million British thermal units to the end of 2013 of $18 / million British thermal units above.

However, since 2014, the rise suddenly reversed. So, Zhang Jun think twooutside the supply and demand. "The Japanese government to promote the development of nuclear power, nuclear power plants in Japan have plans toresume operations. Nuclear power's recovery prospects lead to slow demandof Japan's LNG, the spot price will naturally fall." The Research Institute ofSinopec economic development officials say.

In July 16th, Japan's nuclear regulator to southern Japan's two nuclear reactorsafety guarantee. On the day of release of the draft, located in southern JapanKagoshima Kyushu Electric Power Co. Ltd. of Sendai station of No. 1 and No. 2reactor has been through the security check and Japan's nuclear regulatory agency.

On the other hand is after 2015, Canada's new LNG export project put into operation, the target market is in Japan and South Korea as the leader of theFar East market, so the market is generally expected to Far East supply will greatly increase. Many people in the industry think, if winter prices can be stabilized in the 14-15 USD / million British thermal units, so far east natural gas prices channel basically confirmed.

China insufficient domestic demand

In fact, import prices not only external in decline, even China local needs novibration.

According to Zhang Jun said, in recent years the domestic natural gas prices have been rising, so the natural gas for fertilizer, chemical industry demand"the emergence of a huge decline" -- in the southwest of fertilizer productionarea, a lot of chemical fertilizer enterprises to local government for help, the administrative power to force the oil, Sinopec gas company down industrial gas price.

"Those fertilizer enterprise is the profit, the gas price has occupied the bulk of the cost, once the price rose sharply, then the waiting for their only closed."Industry insiders said.