Natural gas is an essential part of life in 2017 for both recreational and commercial purposes. Natural gas serves roughly 66.7 million homes, 5.4 million businesses, 192,000 factories, and 1,900 electricity generating units — and those numbers are rising all the time. On a daily basis, the average home in the U.S. uses 196 cubic feet of natural gas.
As far as commercial uses, commercial natural gas prices are constantly fluctuating and require dozens of experts to report on the activities and interworking of commercial diesel suppliers and wholesale buyers.
Recently, thanks to some major developments in China, commercial natural gas prices have began to fluctuate on an international scale.
According to the South China Morning Post, PetroChina, the country’s top producer, lifted its prices by 15% in order to increase natural gas prices for global commercial users.
Distributors will now have to pay 10% more for natural gas starting in November until March of 2018 and will have to pay 15% more (due to the difference between the base volume from last winter) until March 2017.
“We have already signed procurement contracts with PetroChina for all cities in Hunan, Hebei and Jiangsu provinces in addition to Luoyang in Henan province and Huludao in Liaoning province,” said a spokeswoman for ENN Energy Holdings.
During the first nine months of the year, China’s natural gas consumption has increased 18.4% year on year, which is a 6.6% jump from all of last year.
“Given the tight gas supply in northern China this year under the coal to gas initiatives as indicated by the recent hot piped gas bidding at [the gas exchange], [the industry] had already expected that [PetroChina] would repeat its price hike this year during the heating season,” added Dennis Ip, of Daiwa Capital Markets.
As far as the United States is concerned, President Donald Trump’s recent visit to China attempted to firm up natural gas agreements between the two nations. In the same way that U.S. politicians want the United States to become more energy independent, Chinese leaders are also wary of becoming too dependent on imports from a single country. So while the recent activity in China may temporarily increase natural gas prices in markets around the world, the country may also be stepping up imports of natural gas from the United States.
“U.S. supplies could help reduce China’s reliance on gas imports that transit strategic chokepoints,” added Hugo Brennan, an Asia financial and risk analyst.
If you want to learn more and stay on top of current commercial natural gas prices, contact Bollinger Energy Corporation today.