On natural gas pricing reform in China

Since April 1, 2015, for those non-residential gas users, the stock gas and incremental gas prices have been unified, and direct-supply gas prices have been released. This means that natural gas pricing reform has entered a new stage of development in China. In view of this, we first summarized and analyzed the achievements, status quo and existing problems in natural gas pricing reform in recent years in China. Then, we made an overview on the global natural gas pricing and marketing experiences and domestic situation in natural gas sector. On this basis, we presented the following proposals and implement approaches to ultimately achieving the market-oriented reform of natural gas pricing in China. First, the ex-factory prices for those residential gas users will be adjusted, which should be differentiated from those for the non-residential gas users. Second, the present natural gas pricing mechanism should be perfected with pipeline fees and gas storage fees being both added. Third, an integrated natural gas pricing system should be improved with differential prices implemented. Fourth, natural gas spot transaction should be promoted and energy measurement in gas metering and pricing should also be put into practice