Zhuo Chuang Information: LNG market prices have moved upward, driven by demand recovery alongside geopolitical disruptions

As of March 5th, the weekly average transaction price of LNG at domestic factories was 3,685.73 yuan/ton, an increase of 255.34 yuan/ton from the previous period, a rise of 7.44%. Influenced by demand recovery and geopolitical disturbances, domestic LNG market prices are on the rise. On the demand side, post-holiday resumption of work and production has accelerated, with downstream demand such as industrial and vehicle use recovering quickly after the Lantern Festival. Upstream shipments have improved, and inventory pressures have eased. Liquefied natural gas plants have increased prices for 8 consecutive days since February 26th, but terminal resistance to high prices has also strengthened. On the supply side, March marks the maintenance season for LNG plants, with production resuming and maintenance occurring simultaneously. Operating loads have increased compared to before the holiday, and domestic gas supply is sufficient. At the beginning of the week, some resource suppliers at receiving stations lowered prices for shipments. Later in the week, international tensions escalated, causing spot LNG prices at ports to rise, with marine gas prices collectively pushing higher. Looking ahead to next week, international geopolitical disturbances will continue to affect marine gas supply, with fewer ships arriving and rising import costs. The phenomenon of marine gas holding prices and selling reluctantly may increase, and rising prices at receiving stations will drive inland LNG prices higher. Additionally, declining processing plant liquid levels and partial wellhead maintenance will likely lead to further inland LNG price increases. It is expected that the price increase will continue and expand next week, with a weekly average price possibly reaching 4,066.54 yuan/ton. (Zhuochuang Information)