LNGpricedropsby10percent

From: Shenzhen Daily

Updated: 2007-12-28 00:12

DOMESTIC consumers are now paying 3.5 yuan (US$0.48) for each cubic meter of liquefied natural gas (LNG), 10 percent lower than the previous rate, under a new price scheme adopted by the city"s gas group on a trial basis.

According to a notice from the municipal pricing authority Wednesday, the price applies to domestic consumers, as well as school restaurants and canteens, while public institutions and company canteens are being charged 3.7 yuan per cubic meter. Businesses are paying 3.95 yuan per cubic meter, the Daily Sunshine said Thursday.

Previously, Shenzhen Gas Group charged domestic LNG users 3.95 yuan per cubic meter.

The new pricing scheme will be finalized at a public hearing to be held soon, the newspaper said, without specifying the exact date.

The gas group will refund LNG users the amount they were overcharged after the final price is fixed.

At present, the price of a 15-kg liquefied petroleum gas (LPG) cylinder within the Shenzhen Special Economic Zone is 120 yuan while the price of pipeline LPG is 18.6 yuan per cubic meter.

The cost of LNG is 40 percent less than that of LPG, although the energy produced by LPG is 2.8 times that of LNG. Therefore, an LNG user has to pay 9.8 yuan (2.8 cubic meters by 3.5 yuan per cubic meter) for the same energy produced by LPG per cubic meter.

Of the 810,000 pipeline gas users in the city, 580,000 households have switched to LNG, which is cleaner and cheaper. The rest will convert to LNG soon.

The LNG price for Shenzhen users will remain stable for many years, according to an agreement signed with the Australian supplier of gas.

In 2002, China and Australia signed a deal under which Australia will supply 3.7 million tons of LNG to the LNG terminal in Shenzhen each year.

The price of LNG is 2.05 yuan per cubic meter in Beijing, 2.1 yuan in Shanghai and 3.45 yuan in Guangzhou.