January 5, the Shanghai municipal government announced that the Shanghai municipal government agreed to by the Xinhua Financial Investment Co., Ltd., in 10 oil and gas companies venture Shanghai trading center. Interview with reporters, many experts believe that the establishment of natural gas spot trading center is to promote the energy system of the revolution, an important step in advancing the market price of natural gas. The next level as the market continues to improve, the natural gas trade from long-term contracts may be short-term contracts to spot trading and even transformation, but will not be completely replaced.
Forced Asian Asian premium gas trade center construction
In recent years, with the rapid economic development in Asia, especially the growing demand for oil and natural gas demand for energy. Asia is becoming the world’s major oil and gas importer, foreign dependence continues to rise. But the area has not yet formed an influential oil and gas trading center, the lack of pricing right to speak.
2013, followed by the three Northeast Asian base price of natural gas trading system – the average CIF Japan LNG per million British thermal units $ 16.17, or about Germany, the UK gas import prices 1.5 times that of the United States Henry natural gas hub price 6 times.
One reason is that in the US, Europe, the Middle East and other oil and gas consumption and production countries and regions, both oil and natural gas futures, but also oil and gas spot market, improve the market structure, rich trading system for the oil and gas trade offers a variety of channels. But it lacks a sound trading pricing system in Asia.
With rising global oil and gas production, slowing demand growth, oil and gas flows and market structure is undergoing significant change, oil and gas prices have also been falling, the right to speak importer is improving, build oil and gas trading center in Asia has become consensus and inevitable.
China International Economic and Exchange Center Research Associate Chunmei King pointed out that in recent years, Japan, Korea, Singapore are actively seeking to establish natural gas trading center, and then fight for Asian gas pricing. Construction of the natural gas trading center for the reduction of import premium pricing power and access to natural gas has an important and positive role and significance, is conducive to China for the Asian natural gas pricing, the expansion of China in the international discourse gas sector.
Natural gas trading center established to promote domestic pricing mechanism will help to improve
Increasing expensive imported gas and the increasingly high cost of domestic natural gas development, Forced gas prices accelerate the pace of reform. Currently, different sources of natural gas pricing mechanism, the price difference is also large, leading to ease gas prices is difficult, hard to the rational allocation of resources. Conduction from the correct price signals, rational resource allocation point of view, the establishment of natural gas trading center, help nurture the natural gas price discovery center, cope with the impact of natural gas supply and demand in the international market and price volatility.
Natural gas market development experience from abroad, the European tradition linked pricing mechanism and crude oil prices, but with the European countries have set up natural gas trading center, natural gas users, dealers and importers find the spot gas price changes on supply and demand, “responsive” more accurately reflect the market value, but also more to promote win-win situation, culminating with the oil-linked pricing based, spot gas prices linked to mixed pricing supplement, the proportion of natural gas consumption and gas prices in recent years linked to from 16% to 47%. We can say that the establishment and development of natural gas trading center in Europe is a catalyst for reform of the pricing mechanism.
King noted Chunmei, building natural gas trading center, will help China to further promote the reform of natural gas pricing mechanism, establish natural gas prices from different sources are interrelated, effective linkage uniform pricing mechanism. In addition, the construction of natural gas trading center, helps to break the monopoly, to attract more gas distributors and end users, expand market reach, and promote positive interaction and development of China’s natural gas the whole industry chain. “(Trading center) for the natural gas industry chain system Forced to play a role in the pipe network is an independently operated Forced on the formation of an independent transmission and distribution of gas prices is a Forced.”
Establishment of natural gas trading center will play a decisive role in favor of market allocation of resources
China’s current natural gas market mature, natural gas supply contracts and gas trading conditions for the lack of flexibility, part of the price is also subject to control, difficult to adapt because of resources, market conditions and seasonal variations caused by changes in natural gas supply and demand situation. Construction of the natural gas trading center will help solve this problem. Chunmei King pointed out that in the natural gas trading center, buyers and sellers can talk face to face direct price, which is an important step in the reduction of energy product attributes, which directly reflects the actual price of natural gas supply and demand.
Establishment of natural gas trading center for natural gas producers, distributors and end users benefit. For manufacturers, the price of the trading center to form a direct reflection of the actual supply and demand, could then arrange the production, supply, while ensuring reasonable arrangements for production. Dealers and end users, you can use a lower purchase price, to get more revenue. At the same time, natural gas trading center affordability meet strong user demand for high value-added products, and promote optimal allocation of resources.
Moreover, the natural gas market in different seasons, will form different gas prices, market participants can take advantage of arbitrage spreads. For example, natural gas use in the off-season, companies can purchase low-cost natural gas during the winter heating period, sell high profit.
In addition, the construction of natural gas trading center also helps to promote the government, gas production and transportation companies, city gas companies and large industrial users and other market players involved in gas storage investments, peaking provide a flexible infrastructure protection. In the United States, whether it is gas injection gas storage or gas production is mainly determined by the market price of natural gas. When the low market price of natural gas, natural gas operators to purchase natural gas from the market and stored in gas storage. When the price is high, and then transported from the gas storage gas production to the user. Summer and winter gas prices is poor, peaking gas prices and gas peak bargaining is the main driving force to promote the development of the North American gas storage height.
Original Gas Energy Research Center analyst Liu Yang pointed out that China, China’s natural gas truly determined by the market price, but also the need to break the industry market-oriented reforms. This requires the establishment of a sound legal rules, diverse market players, improve infrastructure and an independent regulatory body. Establishment of natural gas trading center is an important step in the development of the market, is to promote market-oriented reform of the industry cite the essay, the natural gas market will lay the foundation for the healthy development of China.(http://www.lubonchem.com)