On August 26, 2013, the natural gas liquefaction project with a capacity of 1 million cubic meters per day was designed by Dazhou Huixin Energy, Sichuan Province. The ex-factory price was reduced to RMB 4,900/ton, down RMB 100/ton. It is reported that the current factory shipments are still acceptable, basically no inventory, and more with production and sales.
Analyst Li Wenjing believes that in August, with the entry of low-priced imported liquefied natural gas (LNG) resources and the gradual resumption of production in a number of factories that had previously been shut down, the supply of domestically produced liquefied gas has increased, and the supply side has also eased. In addition, the current factory shipment situation has been under pressure, and recently due to incomplete procedures and other gas filling stations in Shanxi, Henan and other places have been seized, resulting in a decline in market demand for LNG vehicles, which led to the overall market demand is relatively weak. The ex-factory prices of some factories were forced to decline under the double negative of supply increase and weak downstream demand.
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