China Officially Launches Gas Exchange

China November 26 officially launched the Shanghai Petroleum and Natural Gas Exchange (SHPGX) in a bid to make the country's oil and gas industry more market-friendly.

The launch ceremony was attended by industry leaders including the chairman of the National Development and Reform Commission Xu Shaoshi, China National Petroleum Corp group chairman Wang Yilin, Sinopec group chairman Wang Yupu, China National Offshore Oil Corporation chairman Yang Hua, as well as Xinhua News Agency president Cai Mingzhao and Shanghai mayor Yang Xiong.

CNPC's Wang Yilin (Credit: CNPC)

CNPC's Wang Yilin said natural gas is gradually taking a higher share in the energy basket as it is recognised as clean energy source and extensive development of the gas resources is of great significance to China, according to a report published on CNPC’s website. The exchange would be helpful in nurturing the natural gas market, he said adding the official operation of SHPGX will become a powerful starting point for China's oil and gas industry's market-oriented reform policy.

The exchange started trial operation in July 2015 and has 10 shareholders, including CNOOC (10%), CNPC (10%), Huaneng Power International (5%) and Sinopec (10%).

Shardul Sharma