Nine liquefied natural gas plants in Shaanxi province are threatening to halt production over the city-gate gas price hike announced by China National Petroleum Corp., the National Business Daily reported Tuesday, citing industry sources. CNPC has announced city-gate prices will be raised to 2.48 yuan (40 US cents) per cubic meter in Shaanxi plus a piped transportation fee of 40 fen, but local LNG plants have refused to pay the extra transportation cost as they source the gas directly from the Changqing field in the province, the paper said. One LNG factory manager was quoted as saying that they will lodge complaints with the province’s pricing authority and suspend production if the issue is not resolved soon, the report said. CNPC is currently negotiating the issue with the local LNG plants, it added.
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