China’s new natural gas pricing system, which links gas prices to fuel oil and LPG prices, would benefit local producers and importers of piped and liquefied natural gas as well as promote domestic production, Bernstein Research said in a note Thursday.

However, PetroChina would be the only producer/importer to benefit in the short term as the new pricing system will kick off in South China’s Guangdong and Guangxi provinces, where it is the sole supplier, Bernstein analysts said. But there is no clear timeline on when the pricing reform would be introduced to South China or when it would be extended to the other regions.

(Source: www.platts.com)

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