DOMESTIC liquefied natural gas (LNG) prices in China have surged to a record after frigid temperatures drained inventories and boosted demand for the heating fuel.

The national average price for the fuel, carried by trucks to factories or vehicle refueling stations, rallied nearly 80 percent in the last month to a record 8,114 yuan per ton (about US$27.5 per million British thermal units) Tuesday, according to the Shanghai Petroleum & Natural Gas Exchange.

Temperatures in Beijing were below the seasonal average from Feb. 12-22 and are forecast to remain frigid through Thursday, according to the latest Global Forecast System model.

Domestic LNG prices are free-floating, unlike government-regulated pipeline gas, and help to indicate changes to supply and demand in the world’s largest importer.

With colder weather depleting inventories across northern parts of the country, China may seek to snatch up LNG cargoes from the spot market, further tightening global supplies.

(SD-Agencies)