Feasibility Study On Building A Trading Market Of Natural Gas In Shanghai

Over this century, natural gas has been the fastest growing energy in the primary energy consumption market in China. Although its proportion is much lower than the average level of the world and the developed countries, the growth rate is amazing. Looking into the future, it is predicted by WEO that natural gas will still be the fastest growing energy in the primary energy consumption market in China before2030. Cross-district comparison shows that China will be the area where the natural gas demand grows fastest around the world for a very long time.From the point of correct price information transmission and market stabilization, a mature regional trading market of natural gas will contribute to form a regional pricing center to deal with the impact from the global market. A mature regional trading platform would quickly and precisely reflect the actual effect of China gas demand and more objectively reflect the change of domestic market demand, which would reduce the impact of the international speculation on domestic market.Shanghai is the place where there is the most intensive industries, where most energy is consumed and where the economic aggregate increases with the highest speed. The good market environment and relatively high economy development level are beneficial to the foundation and development of natural gas trading market. With seaways connecting to global gas resources, road nets covering the users in east China and the rapid gas demand growth in the around areas, Shanghai is advantaged in LNG receiving, gasification and transformation, which contributes a best opportunity to build a natural gas trading market.Natural gas market in China is in the key stage of distribution and layout. As the leader and forerunner of reform and opening-up, Shanghai is obliged to become the forerunner and explorer of the reform of the natural gas market. This essay is going to demonstrate the feasibility of building a regional spot market of natural gas in Shanghai and to give an instruction to its multiple capacities of dispatching, transferring, balancing, advance delivery, postpone delivery, storage and other supporting service.