China's escort shanghai NDRC may link natural gas prices to oil prices

China's escort shanghai NDRC may link natural gas prices to oil prices
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China's NDRC may link natural gas prices to oil pricesPublished: 18 May 2009 18:53:06 PST

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May 19, 2009 (China Knowledge) - The National Development and Reform Commission (NDRC), China's top economic planner, has submitted a scheme of linking natural gas and oil prices to the State Council for possible approval, the Shanghai Securities News reported, citing an insider close to the situation as saying.

The price of natural gas would be linked with international crude oil prices and adjusted based on factors such as transportation of the fuel.

Under the reform scheme, natural gas prices would be raised gradually in accordance with the prices of natural gas alternatives such as oil, the Economic Observer reported.

Industry insiders said the natural gas price reform was proposed to prevent the chaos caused by the price difference between domestic natural gas and imported natural gas.

The NDRC sets different prices for natural gas for different industries, regions, and buyers.


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