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China overhauls natural gas pricing for equality
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China overhauls natural gas pricing for equality
Keyword:
Publish time:
3
rd
March, 2015
Source:
www.cnchemicals.com
Information collection and data processing: CCM For more information, please
contact us
China will set an equal, fair natural gas pricing structure for all industrial users to allow market forces to lead the energy sector, the country's top economic planner announced on February 28.Effective from April 1, the wholesale price for old users would be increased by 0.04 yuan (0.6 cents) per cubic meter, while new users would pay 0.44 yuan less, the National Development and Reform Commission (NDRC) said.After the adjustment, the price for both groups will be the same, and rise and fall in a uniform way.The NDRC previously launched a market-oriented energy pricing mechanism on July 10, 2013, assigning a different pricing system for existing and new factories, with old users enjoying relatively low prices compared with newcomers.To fulfill its promise to gradually level the price gap, the NDRC raised the wholesale gas price for old users on September 1, 2014, for the first time since the measure was put in place.The NDRC also plans to initiate a pilot scheme, which will allow gas producers and major factory users to set the energy price.Big factories, excluding
fertilizer
producers, may negotiate gas prices with the country's major energy companies starting April 1.Currently, gas prices are controlled by the State and local economic planning bodies.China saw its natural gas output grow 10.7% year on year to 132.9 billion cubic meters (bcm) in 2014, said the Ministry of Land and Resources in January.China consumed 180 bcm of natural gas in 2014, a 7.4% year-on-year growth, according to the China Petroleum and Chemical Industry Federation.The country aimed to increase the output of natural gas to 400 billion cubic meters by 2020, occupying 10% of the total energy
consumption
, said the National Energy Administration in September last year.
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