In Sichuan And Chongqing Natural Gas Prices And The Development Of Market Coordination

Since the implementation of the Development of the West Regions strategy, China's Sichuan-Chongqing region's economy started booming, energy consumption grew rapidly at the same time. Low price has led to rapid growth in natural gas demand and to a supply shortage in the Sichuan-Chongqing region. With increasing exploration and production cost, production limitations, and lagged adjustment of the natural gas price in the Sichuan-Chongqing region, the natural gas exploration sector and pipeline transport organizations has suffered serious losses and faced difficulties in carrying out new investment. The price of natural gas serves as a lever not only to adjust demand,but to encourage increase in proven reserves and production of natural gas. It is suggested that the natural gas price be allowed to increase reasonably to enable the exploration and development of domestic natural gas resources as well as the import of foreign resources and thereby sufficient supply and efficient use of natural gas to facilitate environmental protection and a sustainable and rapid domestic natural gas industry.The rapid development of natural gas based on natural gas market development, while the key issue restricting the development of the natural gas market is price. In this paper, at the angle of sustainable development of the natural gas market, adhere to the principle of seeking truth from facts, use quantitative analysis with qualitative analysis method, first introduced the status of national and international gas markets and prices, pointed out the inadequacies of china's natural gas pricing mechanism by contrast; Then use a large number of Sichuan-Chongqing region's data, using statistical analysis theories conclude that Sichuan-Chongqing region is one of the fastest growing and most perfect gas market in china, it also do a great contribution to Sichuan-Chongqing region's economic and social development, natural gas prices in Sichuan-Chongqing region is very low compared with its alternative energy prices or production costs; then use oligopoly model reveals the low natural gas prices makes the producers are not profitable map who were in the decreasing returns of scale Stage, leading to lack of market supply.while low natural gas prices will make market demand growth too quickly through price leverage, leading to the obvious contradiction between supply and demand; Finally, proposed Sichuan-Chongqing region's natural gas pricing mechanism adjustment method by learning from foreign experience:In a market economy, only when the natural gas price changes that reflect changes in the price of its alternative energy, but also reflect the change in production costs can ease the contradiction between supply and demand, and ultimately, promote the coordinated development of regional natural gas market in Sichuan-Chongqing region.