Mr. Zhang Guobao, CPPCC member and head of the National Energy Administration (NEA), stated on March 4 that China’s natural gas price will be linked to the oil price.
The price link was part of China’s natural gas negotiations with Russia but no further details on the price formula were provided. According to Mr. Gubao, pricing was the “most difficult part” of the negotiations and that “other commercial terms” were still ongoing.
China is looking to increase natural gas imports from Russia as well as increase storage capacity for natural gas (See HNR: China CNPC to build 10 natural gas storage facilities), as China seems to be putting increased emphasis on natural gas as a fuel source. However, in a broader context, China is building out all fuel sources that provide a lower carbon profile.
People’s Daily Online: China to link natural gas price with oil
