China to Launch Market-based Natural Gas Price Mechanism

The National Development and Reform Commission (NDRC) said in a statement that China will establish a natural gas pricing mechanism that reflects availability of resources and market supply and demand this year.

Natural gas will be priced with reference to other energy costs, according to commission. The reform in China’s energy pricing is to improve efficiency of fuel usage. NDRC said the Chinese government will accelerate power-price reforms and increase charges for households that are heavy consumers of electricity.

In June 2010, China raised gas prices by 25% after higher imports boosted costs for domestic suppliers.

Source: Bloomberg