Beach shares its gas price outlook

Beach Energy has tipped rising gas prices in eastern Australia ahead of its presentation in Sydney today.

According to the Australian Financial Review, Beach will point to a "gas pricing paradigm" where domestic gas prices in the eastern states are going to be increasingly linked to oil.

Beach said the LNG plants being built in Gladstone created a shift on the eastern market, with supply and demand tight.

AFP reported that most of the gas demand outside of LNG projects had yet to be contracted.

Beach reportedly said it was poised to benefit from the upswing in demand.

Qingdao refinery halted as death toll rises

At least 52 people have been killed at the China Petroleum & Chemical Corp (Sinopec) Qingdao refinery after a crude pipeline leaked and exploded.

According to Bloomberg, the 10 million tonne per annum facility will suffer from some disruptions.

A Sinopec spokesman reportedly remained coy about the extent of the disruptions and did not give further details.

The news site reported 136 were injured and 11 were missing.

Shares in the company reportedly fell as much as 3.4% to $HK6.77 (A95c) per share.

Cold winter set to increase spot deliveries

The Australian has reported that Australian LNG projects are set to cash in on severe winter gas shortages that are going to plague China until at least 2020.

The newspaper said winter residential demand in some northern cities could increase tenfold from non-peak requirements just this year.

China's gas production is tipped to fall short of demand despite gas price reform that would open up a spot market in China for Australian LNG producers.

"The implications are a tighter seasonal spot market in northeast Asia, increased opportunities for suppliers and further reforms needed to accelerate shale development," consultancy firm Wood Mackenzie reportedly said.