In early 2015, China’s National Development and Reform Commission announced a major cut in natural gas prices starting in April. In this inaugural Chinese-language podcast, Carnegie–Tsinghua's Wang Tao and Dong Xiucheng discussed the reasons for, and the impact of, the price cut in relation to China's energy security.
Dong explained that the cut in the price of China’s natural gas is the direct result of lower crude oil prices. He maintained that this price cut will have a negative impact on natural gas producers and importers, while producing benefits for fertilizer makers and other chemical industries. Suggesting that future price changes should be more frequent and market-oriented, Dong asserted that China should diversify its energy resources so as to minimize the effects of unpredictable market fluctuations.
This podcast was recorded in Chinese.
Wang Tao is a resident scholar in the Energy and Climate Program based at the Carnegie–Tsinghua Center for Global Policy. His research interests include unconventional oil and natural gas as well as China’s energy policy.
Dong Xiucheng is the director of the Oil and Gas Development Research Center at the China University of Petroleum. He also serves as a strategic and policy consultant for the Chinese government and major petroleum corporations.