Analysis Of Factors Influencing China’s LNG Import Trade

With the improvement of urbanization level and the demand of industry,and the superior environmental protection performance of liquefied natural gas(LNG),the consumption of LNG in China is gradually increasing.LNG has the characteristics of high economic efficiency,high safety,convenience and flexibility,making LNG the fastest growing and most promising fuel in the global resource competition.The oversupply situation in the Asian LNG market is intensifying,and the Asian market price continues to decline.While grasping the opportunity,China should pay attention to some problems caused by the increase in LNG imports on the basis of opening LNG import channels.By reference,this thesis systematically evaluates and studies the import trade of LNG in China through the combination of theoretical and empirical research,qualitative and quantitative research.Through qualitative analysis,this thesis explores in depth the main factors affecting China’s LNG import and price issues and import safety issues.The thesis selects the LNG trade panel data of China and Australia,Malaysia,Indonesia and other several countries in 2006-2017,and establishes an extended trade gravitation model for empirical analysis to explore the main influencing factors that determine China’s LNG imports.The results show that the total economic scale of China and trading partners has a positive impact on LNG imports.China’s scientific and technological progress has a negative impact on LNG imports.China’s attention to environmental protection and investment have promoted the import of LNG.“One Belt and One Road” initiative has a positive impact on LNG imports;the geographical distance between importing countries and China is no longer a factor hindering the trade of LNG.The export scale of LNG from trading partner countries has promoted the import of LNG in China;the reduction of the spot price of the Henry Center in the United States has increased the contract volume and promoted the import of LNG.The signing of a long-term contract can greatly increase the import of LNG.Based on the analysis and discussion of these issues,this thesis puts forward the strategy of developing China’s LNG import trade.While vigorously promoting the diversification strategy of LNG external sources,more companies should be encouraged to join in and develop natural gas fields.In a result,the domestic natural gas supply level and the self-sufficiency level of natural gas can be improved.