The Chinese government plans to introduce new measures on June
10 to regulate imports of natural gas in order to protect its three
major gas importers from intense domestic competition.
Sources with the Ministry of Commerce said on Tuesday that the
move would end the chaotic competition between China's three oil
and gas giants - China National Petroleum Corp, Sinopec and China
National Offshore Oil Corp - in the purchase of gas, which has
helped overseas exporters raise prices.
The competition has been blamed on the lax import system for
natural gas that is currently in place. Enterprises, at present, do
not have to satisfy any conditions to obtain import permits for
natural gas. After June 10, each application for an import permit
will be examined and approved.
China aims to slash its energy consumption per 10,000 yuan of
GDP by 20 percent by 2010 so natural gas, seen as an ideal way to
meet this target, is now in huge demand nationwide.
Apart from the Big Three, enterprises controlled by local
governments have joined the competition for gas imports, which is
contributing to a further hike in prices.
According to the National Development and Reform Commission,
Indonesian exporters have adjusted the price of LNG (liquefied
natural gas) from US$25? per barrel to US$38 per barrel for
Chinese buyers in eastern China's Fujian Province. The commission
also revealed that the price of natural gas exported by Russia to
China is likely to be raised to US$180 per 1,000 cubic meters.
Han Xiaoping, a senior analyst with Qunying Energy Consulting
Co., said international natural gas markets are decided by gaming
between major buyers and major sellers. Bringing gas imports under
unified control will be conducive to increasing the influence of
major Chinese buyers on the market.
(Xinhua News Agency May 29, 2007)