SHPGX Launched to Lead China’s Market Reform of Energy

(Xinhua News Agency, Nov. 26, 2016. Complete text:) Shanghai - Shanghai Petroleum and Natural Gas Exchange (SHPGX), a national energy trading center, officially opened for business on Saturday [Nov. 26], a step further toward China’s market-oriented reform of energy.

Xu Shaoshi, chairman of the National Development and Reform Commission, said that the platform is both an important achievement of China’s market reform of oil and gas prices, and strong support for further reforms.

Since its test run, SHPGX has played an important role in connecting suppliers and buyers so as to form rational energy prices, Xu said.

The center was established in March 2015, with ten stakeholders, including Sinopec, CNPC and CNOOC. Trial operations started in July 2015. It is estimated that gas transactions at the center will exceed 15 billion cubic meters this year, accounting for about 8% of China’s total natural gas consumption.

Mayor of Shanghai Yang Xiong noted that the new center would expand Shanghai’s influence in the natural resources market.

China is experiencing profound changes in energy consumption pattern. The market share of clean and efficient natural gas is climbing rapidly.

Experts said the launch of SHPGX will help to accelerate the natural gas price reform by forming reasonable prices and promoting smooth allocation of the resource.

PetroChina chairman Wang Yilin said as a just, fair and open platform, SHPGX faithfully reflects natural gas consumption based on seasonal and regional differences, so as to reveal its true value and stabilize the market.

PetroChina will continue to expand its trading volume on the platform and fully support the natural gas futures business of SHPGX that is under preparations, Wang said.

"China needs such a petrol and gas trading center to press forward the market reform of energy," said Wang Yupu, chairman of Sinopec, adding SHPGX will get full ...

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