Strategy For Sustainable Development On Importing Liquefied Natural Gas (LNG) Of China

With many restrictions of import natural gas pipeline and high price of oil,Liquefied Natural Gas（LNG）trade is growing rapidly that more regions andcountries target LNG to import or make it as reserves. China’s natural gas demand isgrowing very fast, accounting for more than one-fifth of the increase in global gasdemand to2035，around43%imports of China（EIA）. LNG plays a critical role.Based on geo-economic theory, this paper was built within the framework ofeconomic analysis, by defining the economic environment, setting the behaviorassumptions, arranging the economic system, comparing with evaluations, andchoosing equilibrium results. The following is main results of research.（1）The paper analyzed China’s LNG industry chain in the scale and technicallevel, LNG trade security and supply continuity, and then designed LNGgeo-economic strategy. A country risk rating system was established in the paper.Related data and information in the year of2010was used to assess the country’spolitical risk, economic risk of China’s major LNG importing countries. Besides,resource potential of world major LNG exporting countries was analized on storagecapacity, production, consumption and proven reserves.（2）On basis of China’s LNG industry, including the evaluation of China’senergy security, LNG energy security and sustainability, the three geo-economiccharacteristics of energy, the geo-economic sustainable developing strategy forChina’s LNG importing was designed: selecting the establishment of Asia-PacificLNG regional trade alliance strategy based on the global energy geopolitical patternof balanced and regional national interests of balance; establishing Russia, Iranback-up energy base strategy based on the national long and short-term energy supplyand risk, profit equilibrium selection; increasing the proportion of LNG imports inChina and striving for LNG pricing and future participate in the strategic LNG pricecompetition in the market based on China’s energy structure balance.（3）It designed a market structure and mechanism model for the domestic natural gas market to promote the sustainable developmental strategy on importingLNG of China. And it also used bargaining model to simulate the process ofnegotiations for China and LNG supply country bilateral gas trade, which quotedbased on Bias equilibrium solution.