On Natural Gas price mechanism given present context of China’s natural gas industry

As the efficient clean natural resource, natural gas has become the world top choice of ameliorating environment and promoting sustainable development on economy. It is estimated by International Information Center of Natural Gas that in 2000 world primary consumption gross of natural gas is 2.5 tril cubes, which accounts for 22% of the total consumption of non-renewable resource. As a result of competitive price and ecologic predominance comparing to other fuels, it is expected that world consumption of natural gas will continually increase. And before 2020, annual growth rate can reach 2.7%. It will be one of the important approaches for China to develop natural gas resource to change the structure of energy resources. It is decided by market economy that the basic tropism of price reform of natural resources is market pricing. It is the key to study on natural gas price mechanism. The price management mode of natural gas pricing should turn from primary ldquocost-oriented, governmental-pricing and strict-supervision-and-managementrdquo to ldquounfastening-supervision-and-management, gasoline-connection, standard-price and floatingrdquo. Finally, the price of natural gas should be opened to turn from governmental supervision and management to market pricing. This thesis attempts to analyze the important role government plays and its role diversion in reform of natural gas pricing mechanism from present condition and development of Chinapsilas natural gas price.