The price of gas in China could rise significantly if the government comes through on gas pricing reforms, which could give production of coalbed methane a huge boost, according to consulting company PFC Energy. Beijing introduced a new system for natural gas pricing at the end of last year, testing it in Guangdong and Guangxi provinces. The method uses a basket of high sulfur fuel oil and liquid petroleum gas prices traded in Shanghai in a 60:40 ratio, to calculate natural gas prices based on 90% of the market price of the basket.
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