The price of liquefied natural gas (LNG) in China saw sharp decline at the beginning of January.
In the first ten days of January, the price of LNG stood at 5,613.6 yuan (about 869 U.S. dollars) per tonne, a slump of 22.6-percent compared with the end of December, data from the National Bureau of Statistics showed Monday.
The decline followed months of rising LNG prices, driven by demand in northern China as millions of households shift from burning coal to using gas for heating in winter.
The growing appetite for gas pushed domestic LNG prices to a record high of 9,000 yuan a tonne on Dec. 1 in some regions, according to an industry report.
To secure the gas supply, China's state-owned oil firms, including China National Petroleum Corporation and China National Offshore Oil Corporation, are maximizing production at domestic gas fields, and the National Development and Reform Commission has urged companies to be self-disciplined in pricing.
The rising demand has prompted state oil companies to look overseas for new gas sources. Sinopec will take the lead in exploration of liquified natural gas (LNG) in Alaska, according to a deal signed during U.S. President Donald Trump's visit to China last year.