Study Of Natural Gas Local Distribution Market Structure, Conduct, Performance And Investment Opportunity In China

Today, our country is faced with several big challenges about energy consuming and environment protection. First, the amount of energy consuming is increasing in the last several years. Second, the structure of energy consuming of our country is different from the World's. Third, the efficiency of energy consuming of our country is still quite lower than the developed countries'. Fourth, the security of energy strategy is threatened. Last, a great deal of coal consuming has resulted severely environmental pollution.Along with the international price of petroleum jumping, the price of coal and LPG of our country still are increasing more quickly in the last several years. Under this situation, natural gas (NG) will be the most increasing energy in our country in 21st. NG has several traits, for example, convenience, cleanness and high thermal efficiency. And, the industrial countries all adopted the energy consuming route of gas and petroleum, gradually reducing the percentage of solid energy to enhance energy efficiency. Increasing the NG consuming percentage has several meanings, for improving electricity supply security, substituting petroleum import and environment protection.The upriver and downstream of the NG industry must equilibrium developed can boost the development of the whole industry. The local distribution market (LDM) is the key field connecting the NG producer and the consumer. However, the downstream of the NG industry has more problems, namely LDM. First most local distribution companies (LDC) working not so well. Second, the LDC has not prepared for the pipeline NG and LNG management. Third, new construction and reconstruction of distribution pipelines need great amount of money. Last, the security of NG supply is a difficult task for LDC to deal with.Therefore, our country has issued several policies to break monopoly and introduce competition to improve the management level of the whole industry. In addition to the encouragement of industrial policy, there are still other factors to attract investor, including the consumer can endure higher NG price, the complete of long pipeline construction and high level urbanization. So, the next twenty years will be the great time for the NG industry.This paper use the SCP paradigm to analyze the market structure, conduct and performance of the LDM, giving the investors profound exhibition of the LDM. In the chapter of market structure analyzing, this paper mainly discussed the types of market structure, entry and quit barriers, entry qualification and terms, market concentration indexes, market risk and the possibility evolvement direction of the market structure. In the chapter of conduct analyzing, this paper mainly discussed pricing mode of NG, how to implement classed and seasoned pricing mode to extract consumer surplus, two part pricing, impact of different pricing mode to social welfare, price competition between NG and replaceable energy, price competition between LDC in open access structure, pricing discrimination and the barriers to entry, still analyzed TOP management, it is a very important aspect to the key...