Chinese firm Ningxia Hanas New Energy plans to start commercial supply of liquefied natural gas (LNG) on 1 June from its 2,011 tonne/day plant at Yinchuan in Ningxia, a company source said on Wednesday.

The company has been conducting trial runs at China's largest LNG production facility since 15 March, and is now able to produce 1,206 tonnes/day of LNG, the source said.

Feedstock gas is supplied by PetroChina from the Sebei Gasfield, the Changqing Oilfield and through the second West-East Gas Pipeline, the source added.

The price is yuan (CNY) 3,880/tonne ($612/tonne) EXW (ex-works), the source said. However, the company offers "a discounted price at CNY3,830/tonne [EXW] if the client uses our truck delivery service", the source added. The company has bought 200 trucks, with 60 in service now, the source said.

Ningxia Hanas New Energy is largely engaged in LNG production, gas-fired cogeneration projects of heating and power, and city gas networks.