NDRC urges local govts to avoid rise in gas prices

Source:Global Times Published: 2017/12/4 21:38:39

China's top economic planner recently urged local governments to stabilize natural gas prices throughout the winter, stating that market players should not maliciously raise prices.

The National Development and Reform Commission (NDRC) asked some local price regulators to remind liquefied natural gas (LNG) production and distribution companies as well as related social organizations about the need to strengthen price self-discipline and to regulate price behavior, the Beijing-based Securities Daily reported on Monday.

In October, the average price of LNG was about 2.85 yuan (43 cents) per cubic meter, up 18.75 percent over the previous month. The piped natural gas average price was 1.95 yuan per cubic meter, remaining flat, according to data from the Shanghai Petroleum and Natural Gas Exchange, a national energy trading center.

China has pushed for use of cleaner fuel for heating in northern China to reduce pollution, which has caused soaring demand for LNG, the Xinhua News Agency reported in September. In the Beijing-Tianjin-Hebei region and nearby areas, 28 cities will now use only natural gas, electricity and renewable energy for heating, it said.

On Thursday, North China's Hebei Province suffered gas shortages and had to cut off gas supplies to industrial and commercial clients, industry website eeo.com.cn reported on Friday.

Besides Hebei, Central China's Henan Province and East China's Shandong Province have also reported a lack of LNG supply, according to LNG trade and distribution platforms.

In the first 10 months this year, the consumption of natural gas reached 186.5 billion cubic meters, up by 18.7 percent year-on-year, data from the NDRC showed.


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