China’s Natural Gas Price Reform and Its Impact Analysis

Abstract

With the further development of new types of industrialization and urbanization in China, the environmental deterioration and energy safety problems have been increasingly prominent. As a clean, efficient and high-quality energy source, natural gas has ushered in unprecedented development opportunities. In recent decades, the natural gas consumption has kept high-speed growth in China, but its proportion in the energy consumption structure still has a long way to go to reach the international average level, which is mainly ascribed to the not perfect enough market-oriented reform of natural gas price. Natural gas price reform is not a simple project, but instead, it is complicated as it needs to integrate the reform in the natural gas industry chain, management system reform and market supervision of natural price in different phases. Therefore, promoting the natural gas price reform and establishing a perfect supervision system is the only way to ensure China’s energy safety and realize the transformation and development of low-carbon economy. In this research, the current situation and problems existing in the natural gas price reform in China were analyzed, and the concrete solutions specific to the natural gas industry chain, pricing and market supervision.