LNG E-transaction breaks bottleneck
- Details
- Category: Ningbo News
- Published: Tuesday, 12 August 2014 09:53
At the end of July, a tank truck loaded with 20 tons of LNG drove to the Tongqin Industrial Park in Wuyi, Zhejiang Province, from an LNG factory in Puyang, Henan Province, making the beginning of LNG E-transaction at Ningbo Commodity Exchange, the first exchange to start the LNG E-transaction in China.
In 2014, due to the macro economic environment, the overall demand for LNG is getting lower, while more new LNG factories have been put into production, leading to a more dramatic situation of supply exceeding demand. When the LNG industry in China encounters bottlenecks, the LNG E-transaction platform at Ningbo Commodity Exchange is developing well. Since its official operation in December 2013, there have been about 100 clients conducting E-transactions at the exchange, with the average daily volume exceeding 20000 hands. By the end of this June, the cumulative trading volume had reached 1.264 billion yuan.
Actually, the transportation and storage of LNG has always been the biggest bottleneck for LNG spot exchange. By adopting the advanced E-business technologies, Ningbo Commodity Exchange realized the overall E-transaction of the exchange process. The dealers can complete the trading and settlement of commodities by logging onto the client terminals and making appropriate operations, thus greatly improving the circulation efficiency.
Since the end of 2011, the country has launched the reform pilots of price forming system for natural gas. However, so far, the cost-plus pricing method is still the main way for natural gas trading. According to Wang Shuoshi, head of the greater China region for Ong First Tradition from Singapore, developing the E-transaction of LNG helps to alleviate the country’s passive situation in the international trade market for LNG, and is of great significance for accelerating the fixing of the LNG exchange price in the domestic market.
