China’s government is inching towards a price reform mechanism that could gradually bring relief for the country’s LNG importers.
National planners appear likely to use an oil products-linked model to raise wholesale gas prices closer to the cost of importing LNG and pipeline volumes, energy economist Xiaoyi (Shawn) Mu said this week.
The low regulated price for gas at home is a key deterrent to short-term imports in China and long-promised reforms are a looming question mark over the fast-growing LNG sector.
