The relevant state departments are busily stipulating the plan to adjust the price of natural gas. The overhigh price of natural gas which has restrained its development will be solved soon, unveiled by Chen Yongwu, director of Development Planning Office of State Administration of Petroleum and Chemical Industries on 2000' China International Symposium of Fuel Gas held in Chengdu, Xichuan province.
Reportedly government instead of market orientation determines the prices of natural gases in China. They are the dual price under the guidance of the state. Chen points out that problems exist in current pricing system of natural gas. For example the expense of pipe transmission for natural gas accounts for great percentage, in turn increase the retail price. Besides, the exchange rates between substitutive energy sources like natural gas, crude oil, liquefied petroleum oil are not reasonable. An understandable price of natural gas should be accepted by both producer and investor. And large and stable consumer should be given preference to encourage their consumption. So a reasonable price is called for eagerly now.
It is learnt that relevant party is considering to give different pricing mechanism to the diversified natural gas consumer colonies.
(People's Daily 12/04/2000)
