Market reforms and determinants of import natural gas prices in China

Wang, T; Zhang, D; Ji, Q; Shi, X

Market reforms and determinants of import natural gas prices in China

Wang, T Zhang, D Ji, Q Shi, X

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Publisher:: PERGAMON-ELSEVIER SCIENCE LTD
Publication Type:: Journal Article
Citation:: Energy, 2020, 196
Issue Date:: 2020-04-01

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Field	Value	Language
dc.contributor.author	Wang, T
dc.contributor.author	Zhang, D
dc.contributor.author	Ji, Q
dc.contributor.author	Shi, X https://orcid.org/0000-0001-9653-7395
dc.date.accessioned	2020-09-22T19:34:29Z
dc.date.available	2020-09-22T19:34:29Z
dc.date.issued	2020-04-01
dc.identifier.citation	Energy, 2020, 196
dc.identifier.issn	0360-5442
dc.identifier.issn	1873-6785
dc.identifier.uri	http://hdl.handle.net/10453/142810
dc.description.abstract	© 2020 Elsevier Ltd We use a time series approach to investigate the determinants of import natural gas prices in China with the aim to understand the impact of its natural gas market reform and liberalisation. We pay special attention to the impacts on import liquefied natural gas (LNG) and pipeline gas prices. The liberalisation of the domestic natural gas market and the reformation of pricing mechanisms in the country have caused systemic structural changes. Our results provide clear evidence of a slow but steady departure from oil indexation, in which China's import gas prices are increasingly affected by market fundamentals such as economic growth, climate factors, policies and other market factors. The empirical results provide supporting evidence to further market reform in China. Moreover, we can generalise the present study to the development of East Asian natural gas price benchmarks. It is important for China and the East Asian region to develop their own natural gas price benchmarks that better reflect regional market fundamentals.
dc.language	English
dc.publisher	PERGAMON-ELSEVIER SCIENCE LTD
dc.relation.ispartof	Energy
dc.relation.hasversion	Accepted Manuscript Version	en
dc.relation.isbasedon	10.1016/j.energy.2020.117105
dc.rights	info:eu-repo/semantics/embargoedAccess
dc.subject	0913 Mechanical Engineering, 0914 Resources Engineering and Extractive Metallurgy, 0915 Interdisciplinary Engineering
dc.subject.classification	Energy
dc.title	Market reforms and determinants of import natural gas prices in China
dc.type	Journal Article
utslib.citation.volume	196
utslib.for	0913 Mechanical Engineering
utslib.for	0914 Resources Engineering and Extractive Metallurgy
utslib.for	0915 Interdisciplinary Engineering
pubs.organisational-group	/University of Technology Sydney/DVC (International)
pubs.organisational-group	/University of Technology Sydney/DVC (International)/Australia-China Relations Institute
pubs.organisational-group	/University of Technology Sydney
utslib.copyright.status	open_access	*
utslib.copyright.embargo	2022-02-08T00:00:00+1000Z
dc.date.updated	2020-09-22T19:34:23Z
pubs.publication-status	Published
pubs.volume	196

Abstract:

© 2020 Elsevier Ltd We use a time series approach to investigate the determinants of import natural gas prices in China with the aim to understand the impact of its natural gas market reform and liberalisation. We pay special attention to the impacts on import liquefied natural gas (LNG) and pipeline gas prices. The liberalisation of the domestic natural gas market and the reformation of pricing mechanisms in the country have caused systemic structural changes. Our results provide clear evidence of a slow but steady departure from oil indexation, in which China's import gas prices are increasingly affected by market fundamentals such as economic growth, climate factors, policies and other market factors. The empirical results provide supporting evidence to further market reform in China. Moreover, we can generalise the present study to the development of East Asian natural gas price benchmarks. It is important for China and the East Asian region to develop their own natural gas price benchmarks that better reflect regional market fundamentals.

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http://hdl.handle.net/10453/142810