China’s long march to gas price freedom: price reform in the people’s republic
China is the world’s third-largest gas market – as well as its fastest-growing. Government policy, economic growth and reform of its gas pricing system are driving growth in demand at double-digit rates. The outlook for China’s gas market and its interaction with the wider world of global gas is b...
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| Format: | Working paper |
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Oxford Institute for Energy Studies
2018
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| _version_ | 1826300107972149248 |
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| author | O'Sullivan, S |
| author_facet | O'Sullivan, S |
| author_sort | O'Sullivan, S |
| collection | OXFORD |
| description | China is the world’s third-largest gas market – as well as its fastest-growing. Government policy, economic growth and reform of its gas pricing system are driving growth in demand at double-digit rates. The outlook for China’s gas market and its interaction with the wider world of global gas is both a major question for international gas players as well as for Chinese policymakers. While it is primarily government policy driving gas demand today, through the coal-to-gas switching programme underway in northern China, once that ends gas pricing will be the key driver of demand. The government faces a challenge of choosing between low domestic prices to stimulate demand and improve the environment or high prices to encourage domestic production and restrain the country’s rising dependence on expensive imports – particularly in a challenging international political environment. The current pricing structure is a hybrid of regulation and market linkages – albeit moving in the right direction. We identify and analyse the success stories of price reform in China and the challenges that government and industry still face – not all of them pricing-related, since they include midstream reform, infrastructure construction and access, the development of gas hubs and the inevitably serious challenge from renewables. |
| first_indexed | 2024-03-07T05:12:08Z |
| format | Working paper |
| id | oxford-uuid:dbecc01f-1cb4-4ff7-ae83-80d64dd5d4f5 |
| institution | University of Oxford |
| last_indexed | 2024-03-07T05:12:08Z |
| publishDate | 2018 |
| publisher | Oxford Institute for Energy Studies |
| record_format | dspace |
| spelling | oxford-uuid:dbecc01f-1cb4-4ff7-ae83-80d64dd5d4f52022-03-27T09:14:03ZChina’s long march to gas price freedom: price reform in the people’s republicWorking paperhttp://purl.org/coar/resource_type/c_8042uuid:dbecc01f-1cb4-4ff7-ae83-80d64dd5d4f5ORA DepositOxford Institute for Energy Studies2018O'Sullivan, SChina is the world’s third-largest gas market – as well as its fastest-growing. Government policy, economic growth and reform of its gas pricing system are driving growth in demand at double-digit rates. The outlook for China’s gas market and its interaction with the wider world of global gas is both a major question for international gas players as well as for Chinese policymakers. While it is primarily government policy driving gas demand today, through the coal-to-gas switching programme underway in northern China, once that ends gas pricing will be the key driver of demand. The government faces a challenge of choosing between low domestic prices to stimulate demand and improve the environment or high prices to encourage domestic production and restrain the country’s rising dependence on expensive imports – particularly in a challenging international political environment. The current pricing structure is a hybrid of regulation and market linkages – albeit moving in the right direction. We identify and analyse the success stories of price reform in China and the challenges that government and industry still face – not all of them pricing-related, since they include midstream reform, infrastructure construction and access, the development of gas hubs and the inevitably serious challenge from renewables. |
| spellingShingle | O'Sullivan, S China’s long march to gas price freedom: price reform in the people’s republic |
| title | China’s long march to gas price freedom: price reform in the people’s republic |
| title_full | China’s long march to gas price freedom: price reform in the people’s republic |
| title_fullStr | China’s long march to gas price freedom: price reform in the people’s republic |
| title_full_unstemmed | China’s long march to gas price freedom: price reform in the people’s republic |
| title_short | China’s long march to gas price freedom: price reform in the people’s republic |
| title_sort | china s long march to gas price freedom price reform in the people s republic |
| work_keys_str_mv | AT osullivans chinaslongmarchtogaspricefreedompricereforminthepeoplesrepublic |