What’s new: Non-residential natural gas prices in multiple northern Chinese cities are up 10% to 20% this month compared to October. Prices are known to rise in winter and usually return to a lower level in March.
Among the cities to see price hikes, Beijing adjusted up its natural gas prices by 0.31 yuan ($0.04) per cubic meter, taking the highest price level to 3.18 yuan per cubic meter.
Public services like schools and nursing homes will not be affected by the adjustment.
What’s the background: The increase in natural gas prices during the winter heating season is a regular occurrence due to higher demand, especially in the country’s north.
According to data service provider Sublime China Information Co. Ltd., the average price of liquefied natural gas in the country on Tuesday surged 30% to 3,816 yuan per ton from mid-October.
Meng Yadong, sales manager of Sinopec’s natural gas branch, predicted the winter season will see a 9% year-on-year jump in China’s natural gas consumption to 148 billion cubic meters.
Contact reporter Lu Yutong (yutonglu@caixin.com) and editor Marcus Ryder (marcusryder@caixin.com)
