Beijing Gets Serious About Natural Gas Price Reform

摘要

China is expected to unveil a new natural gas pricing mechanism aimed at narrowing the gap between low domestic prices and relatively pricier imports of LNG and piped gas. Given double-digit annual growth in gas demand, China has been anxious to increase gas imports. It has lined up pipeline supplies from Turkmenistan, Myanmar and Russia and inked LNG contracts with Australia, Malaysia, Indonesia and Qatar. But the imports are likely to be up to three times more expensive than domestic gas.