China Energy Network, a news network that People’s Daily sponsors, recently reported that PetroChina announced its new winter natural gas pricing structure. All customers can expect a minimum 20 percent price increase this winter. This minimum percentage was set by the Chinese government as the baseline price. In Eastern China, the PetroChina price increase will be 38 percent, across all types of customers, including the consumer market. In Southern China, the increased number will be 40 percent. Natural gas related stocks skyrocketed after the announcement. The Chinese government officially increased the tariff against U.S. liquid natural gas (LNG) by 25 percent. In the past 12 months, China became the second largest U.S. LNG buyer (after South Korea). After China’s tariff announcement, in the month of July, China’s import volume from the U.S. already dropped in half.
Source: China Energy, August 8, 2018