On June 18, 2013, CNOOC Fujian Putian LNG Receiving Station imported Indonesia's Donggu LNG (liquefied natural gas) for about the same length. The reporter learned from insiders of CNOOC that the price agreement rose more than 70% from the current LNG air source price of around US$4 per million British heat to about US$7 per million British heat.
The price of LNG in Indonesia and CNOOC is basically the second lowest price for China's LNG imports. Industry analysts believe that with the gradual increase in domestic LNG supply prices, low-cost long-term LNG resources will become increasingly difficult to protect. Due to the tight supply and demand of natural gas in the country, it will inevitably increase the import volume of high-priced gas such as Qatar. With the domestic natural gas pricing mechanism not yet completely straightened out, the prices of LNG imported from CNPC and CNOOC will intensify, which is not conducive to expanding the enthusiasm of enterprises for import. Or can not be forced to exacerbate the natural gas supply restriction situation.
Long-term implementation of import LNG prices in Indonesia
According to a person familiar with the negotiations within CNOOC, the price agreement negotiations that began at the end of last month have basically ended. LNG’s long supply price is estimated to have risen to around US$7 per million British heat. Indonesia's supply of CNOOC LNG resources has been targeted by CNOOC Fujian Putian Receiving Station. Prior to this, Indonesian sources stated that the price of Donggu LNG gas source in Putian, Fujian, was US$3.50 per million British thermal.
Zhuo Chuang, a senior industry analyst with Information Natural Gas, told reporters that she learned of the above situation from the traders who have a trading relationship with CNOOC . In the first four months of 2013, the average price of Indonesian exports of LNG to China was around 208-214 U.S. dollars/t, which was equivalent to 4.0-4.1 U.S. dollars/million U.S. dollars, and this price agreement rose more than 70%.
In 2002, according to the contract between the two parties, CNOOC imported 2.6 million tons of LNG from Donggu Project to the receiving terminal of Fujian Putian each year, which is equivalent to about one-third of the project's production capacity and a term of 25 years. BP in the UK holds 37.16% equity in the project, and CNOOC, as a partner, accounts for 13.9% of the shares. A CNOOC related person said that the price was agreed upon by BP and Fujian Putian Receiving Station, and that after the price increase, CNOOC would share the equity.
Low price of LNG is difficult to guarantee resources
In recent years, the domestic natural gas market is in great demand, and the increase in supply is lower than the increase in demand. It is inevitable that the increase in natural gas imports will increase. Analyst Ma Hui of Zhuo Chuang Analyst said that LNG's long-term low-cost resources are difficult to guarantee. This is an important reason why Qatar’s high-priced gas imports have gradually increased.
At present, CNPC and CNOOC LNG are mainly imported from Indonesia, Malaysia, Australia and Qatar. Li Lan said that Indonesia and Malaysia’s LNG import prices are lower, while the Qatari LNG import contract was signed in 2010 and the price is the highest.
According to Zhuo Chuang Information Technology, the average import cost of all the receiving stations in China last year, the average import price of CNOOC Fujian Putian receiving station was the lowest, at 1925 yuan/ton, which was mainly due to the import of Indonesia's low-cost long gas; CNOOC Shenzhen Dapeng also took Imported low-cost Australian resources are the main factors, but spot prices are high and the average price is high. In 2012, the average import price was 2,995 yuan/ton. PetroChina Dalian, Rudong and CNOOC Ningbo have higher average import prices. Their main import gas source is from Qatar, and the highest is Ningbo receiving station at 5,996 yuan/ton.
“Indonesia and CNOOC’s LNG price is basically the second lowest price for China’s LNG imports, and the lowest price comes from Australia’s long-term LNG cargo, which supplies CNOOC’s Shenzhen Dapeng receiving station. There are indications that the Australian side is also actively seeking price increases. In addition, the Australian side has repeatedly reduced the amount of supplies due to typhoon and overhaul of equipment," said Ma Hui.
Price inversion exacerbates supply problems
Li Lan said that at present, China’s natural gas imports, pipeline gas and LNG is almost half to half, due to the natural gas pricing mechanism has not been smooth, full loss of pipeline gas, LNG in addition to low-cost long-term Indonesia, Malaysia, Australia, Qatar LNG is also loss-making.
Ma Hui said that PetroChina Jiangsu Rudong and Dalian receiving stations mainly import Qatar LNG. In the first 4 months, Jiangsu Rudong imported an average gross profit of -1566 yuan/ton, compared with -2502 yuan/ton in the same period of last year; Dalian's average gross profit is - 1831 yuan / ton, the same period last year -1,661 yuan / ton; CNOOC Putian, Fujian average gross profit of 1877 yuan / ton, down 819 yuan / ton, due to the addition of low-cost Indonesia LNG, but also increased Qatar high gas imports.
“The price of imported low-priced LNG keeps rising. If the price of natural gas is not changed in time, there will be an upside down in the future. This does not take advantage of the enthusiasm of the company’s growth in imports, and it is difficult to solve the gap in market demand.†China Energy Economic Research Center, Xiamen University Director Lin Boqiang said. Li Guang, a researcher at the China National Petroleum Institute's pipeline research institute, said that in recent years, domestic natural gas needs to increase at an annual rate of 16 to 17 billion cubic meters, while in 2013, the increase in supply of gas sources (imported and domestic) was only 10 billion cubic meters. About meters, it can no longer meet the increase in demand.
As China National Petroleum Corporation has already exceeded 1.8 billion cubic meters of gas supply in the first quarter, it is necessary to consider gas restriction during the off-season in the second quarter in order to guarantee the use of gas this winter. Since the beginning of April, PetroChina has started to reduce its supply to North China, and the limited range of gas has been around 26%. Since then, users of Guangzhou, Dongguan, Foshan and other places have also received notifications from PetroChina's limited gas, and the limited range of gas has begun to expand in the northwest and southern China. . As of now, there are no signs of improvement in the supply situation. Zhou Jiping, chairman of CNPC, once said that CNPC plans to supply 107 billion cubic meters of natural gas this year, but the demand for downstream docking is 115 billion cubic meters with a gap of 8 billion cubic meters.
Lin Boqiang said that in the case of price inversion, limited air is an unavoidable stop-loss measure, but large-scale restrictions on supply are not possible, because CNPC and CNOOC are integrated upstream and downstream, and a certain plate loss. Other sectors are profitable. Profits and losses can complement each other. Limiting gas is only a strategy. Therefore, only by further promoting price reform can we rationalize the price-price relationship between natural gas prices and alternative energy sources, so as to resolve the problem of cost inversion of imported resources and increase the import enthusiasm of importers.
Simple structure, stable operation, reliable operation and simple operation
Independent variable frequency speed regulating feeder, feeding capacity can be adjusted steadily and continuously
The main bearing box structure is designed with proprietary technology to ensure continuous operation without obstacle
Cemented carbide casting screw, gas plug and inner lining, with Good Wear Resistance and corrosion resistance
Extrusion Equipment,Extruder Machine,,With Reliable Operation
XinxiangHexie Feed Machienry Manufacturing Co.Ltd , http://www.hxfeedmill.com