On Feb 5, the Department of Pricing of Guangdong province listed the prices of a number of power plants and wholesalers for their purchase of imported LNG from Guangdong Dapeng LNG Co., Ltd. Guangdong Dapeng LNG Co., Ltd is the importer of LNG for Guangdong province. The purchase price of Guangzhou Gas Company for imported LNG is around RMB 1.64 per cubic meter.

The Department of Pricing of Guangzhou city noted that the purchase price does not equal the end-user price. In addition to the purchase price, Guangzhou Gas Company will include its construction and maintenance cost of the gas pipeline network, profit, taxes and staff cost in the end-user price. As the city Department of Pricing indicated earlier, the LNG end-user price for Guangzhou residents will be lower than the test price of RMB 3.85 per cubic meter set for Foshan city. As LNG has a higher calorific capacity than LPG, its price will be higher than the current LPG end-user price of RMB 2.50 per cubic meter. In regards of the ratio of calorific capacity between LNG and LPG, the possible LNG end-user price for Guangzhou residents will be RMB 3.46 per cubic meter.

Officers from the city Department of Pricing also mentioned the uncertainty of a public hearing on the decision of LNG end-user price. According to the provincial Department of Pricing, since the LNG supply is stable and it was purchased at a relatively fixed price, the LNG price in Guangdong will be generally steady.

Editor: Yan