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LNG trucking in China: how it unlocks demand and facilitates price discovery

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18 May 2018

LNG trucking in China: how it unlocks demand and facilitates price discovery

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
    • 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
    • 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 11 images and tables including:

  • Trucked LNG and % of China's total gas demand
  • Sources of LNG
  • LNG trucking in China: how it unlocks demand and facilitates price discovery: Image 3
  • LNG imports: pipeline offtake versus trucking
  • Monthly LNG trucking: terminals versus LNG plants
  • LNG trucking in China: how it unlocks demand and facilitates price discovery: Image 6
  • LNG trucking in China: how it unlocks demand and facilitates price discovery: Table 1
  • Ownership of LNG trucks
  • Number of LNG trucks
  • Gas-on-gas competition: Hebei province, northern China
  • Delivered costs of domestically produced LNG and imported LNG (2017, on annual basis)

What's included

This report contains:

  • Document

    LNG trucking in China: how it unlocks demand and facilitates price discovery

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