Insight
LNG trucking in China: how it unlocks demand and facilitates price discovery
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
China is the world's largest LNG trucking market. In 2017, 19 Mt of LNG was transported via tanker truck from domestic liquefaction plants and LNG import terminals to downstream markets, equivalent to 12% of total gas consumption. LNG trucking also played a crucial role in enabling coal-to-gas switching and addressing regas constraints during the winter. Read this insight to understand: The scale of LNG trucking in China and the main growth drivers. The relationship between China’s LNG imports and trucking. The economics of LNG trucking in the country. Whether LNG trucking will be sustainable in the future.
Table of contents
- Highlights
- Background
-
Massive scale of LNG trucking due to China's gas market dynamics
- Insufficient pipeline coverage
- Increasing demand for LNG to meet peak usage
- Increasing demand for LNG as a transport fuel
- Attractiveness of flexibility and liquidity
- Increasing supply of unconventional gas sources
-
Growing relationship between LNG imports and trucking
- What has driven the rapid growth of trucking from LNG import terminals since 2015?
- On a delivered basis, LNG prices are usually range-bound between non-residential city-gate prices and retail tariffs. However, last winter they broke through this range.
- Competition between inland LNG plants and imported LNG has intensified
- Sustainability of LNG trucking: key issues
- Conclusion
Tables and charts
This report includes the following images and tables:
-
Trucked LNG and % of China's total gas demandSources of LNGLNG trucking in China: how it unlocks demand and facilitates price discovery: Image 3
-
LNG imports: pipeline offtake versus truckingMonthly LNG trucking: terminals versus LNG plantsLNG trucking in China: how it unlocks demand and facilitates price discovery: Image 6LNG trucking in China: how it unlocks demand and facilitates price discovery: Table 1Ownership of LNG trucksNumber of LNG trucksGas-on-gas competition: Hebei province, northern ChinaDelivered costs of domestically produced LNG and imported LNG (2017, on annual basis)
What's included
This report contains:
