By Chen Aizhu and Nidhi Verma

Moves by China and India to raise local gas prices will pave the way for increased imports of liquefied natural gas (LNG), as the two nations try to ensure they can meet rapidly increasing demand for the fuel.

Gas prices in both countries have been kept artificially low at levels well below globally traded LNG costs, meaning either LNG importers suffer a loss or local LNG users have to pay a big premium to domestic prices.

India last week nearly doubled the price from around $4.20 per million British thermal units (mmBtu) to a pricing formula that will bring prices to around $8.40 per mmBtu from Apr. 1, 2014.

China made a more modest reform, increasing non-residential natural gas prices by 15 percent, but prices will be higher at up to $10 to $12 per mmBtu in many coastal provinces.

Chinese and Indian gas demand is expected to soar in the coming decade, driven by growing energy demand and efforts by China in particular to increase the amount of cleaner burning natural gas in its energy mix.

Higher gas prices will make LNG imports more attractive and provide incentives for domestic gas developments.

"It's broadly positive for LNG, as most (Chinese) LNG players are nervous of low (cost) competing gas sources," said Beijing-based senior gas analyst Gavin Thompson of Wood Mackenzie.

"We'll start to see a little more of the China influence in the spot, short-term LNG markets than the past few years."

LNG spot prices into China are around $14.50 per mmBtu, while India's gas imports are at $13 to $14 per mmBtu.

"I am expecting there will be some change in (India's) consumer psychology and demand pattern," said R.K. Garg, the head of finance at Petronet LNG.

India imported 15.17 million tonnes of LNG in 2012, which is expected to rise to 50 million tonnes by 2020, while demand in China, which bought 14.7 of LNG last year, is expected to hit 60 million tonnes by 2020, said consultancy Tri Zen International.

"We had assumed higher prices in the forecasts so don't think the latest hikes in the two countries will trigger any changes to the forecasts," said Tri Zen analyst Tony Regan.

The price hikes will also provide an incentive for investment in LNG importing infrastructure.

"A formal indication of a hike in domestic prices will give regasification terminal developers more clarity about future supply potential," said Gautam Sudhakar, senior analyst with IHS in Washington DC.

Within days of the gas price hike, Indian firm H-Energy called for bids from EPC contractors for building an eight million tonnes-per-year LNG terminal in Maharashtra state.

India has plans for an additional 83 million tonnes of LNG import capacity on the books for 2020, much of which may hinge on whether developers feel they can get market prices for LNG.

Chinese importers may be more willing to sign up short-term supplies with export facilities planned in East Africa, Canada and the United States, as well as the more traditional suppliers such as Australia and Qatar, experts say.

The lift in domestic prices will also trim losses at PetroChina's Rudong and Dalian import terminals, which have contracted pricey term LNG from Qatar, and at CNOOC Ltd's Zhanjiang and Fujian terminals which will import LNG from Australia and Indonesia.

Indian gas company GAIL India Ltd has already contracted around eight million tonnes of U.S. LNG imports, raising concerns about who would pay for the expensive imported gas.

"All the uncertainties have been put to rest now ... paying a few dollars more per mmBtu for a more certain 20-year profile isn't going to be a hard sell," said Karthik Sathyamoorthy, head of Asia Pacific at energy consultancy Galway Group.

中印燃气价格改革开启LNG进口增长大门

中国及印度当局双双上调国内燃气价格的动作，将有利于液化天然气(LNG)进口增长，因中印两国将设法确保能够满足快速增长的LNG需求。

中印两国的燃气价格先前都被人为地拉低，远低于全球LNG交易成本，这表示要么是LNG进口商承受亏损，要么就是国内LNG使用者必须支付一笔高于国内燃气价格的升水。

印度上周通过新的燃气定价机制，燃气价格将由4.20美元/百万英热单位(mmBtu)的水准，2014年4月1日起几乎翻倍至8.40美元/mmBtu。

中国的改革幅度较为温和，非居民用天然气价格调涨15%，但许多沿海省份的价格将较高，达到10 to 12美元/mmBtu。

中国及印度未来10年的燃气需求料将大增，主要受到能源需求持续成长，以及中国致力增加较环保的天然气使用量带动。

燃气价格上涨将提高液化天然气进口的吸引力，提供国内燃气开发的诱因。

“这大体上对液化天然气有利，因为多数(中国)液化天然气业者担心其他低价燃气来源的竞争，”Wood Mackenzie驻北京资深燃气分析师Gavin Thompson指出。

“我们将开始见到中国在现货及短期LNG市场上比前几年稍稍更有影响力。”

输往中国的LNG现货价格约为14.50美元/mmBtu，印度的进口燃气价格目前为13 to14美元/mmBtu。

咨询机构Tri Zen International称，印度2012年进口了1,517万吨液化天然气，而且预计到2020年进口规模将扩大至5,000万吨；而中国对液化天然气的需求到2020年料将达到6,000万吨。 

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