Liquefied natural gas is poised for a boost this year after slumping to the lowest level in four months as China increases the appeal of imports by raising the price of domestic supplies.
The world's biggest energy user will increase residential gas tariffs by as much as 20 percent in some cities, according to brokers including Mirae Asset Securities Ltd and CLSA Ltd. Buyers in parts of China are already paying as much as $25 per million British thermal units, compared with international LNG prices that slid to $14.90 this week, the lowest since November, according to World Gas Intelligence.
Record pollution in Beijing this year has prompted the government to boost gas prices to encourage companies such as China National Petroleum Corp and China National Offshore Oil Corp to supply cleaner-burning gas from domestic deposits.