Reuters: India, China gas reforms open door to more imports

 Moves by China and India to raise local gas prices will pave the way for increased imports of liquefied natural gas (LNG), as the two nations try to ensure they can meet rapidly increasing demand for the fuel.

Gas prices in both countries have been kept artificially low at levels well below globally traded LNG costs, meaning either LNG importers suffer a loss or local LNG users have to pay a big premium to domestic prices.

India last week nearly doubled the price from around $4.20 per million British thermal units (mmBtu) to a pricing formula that will bring prices to around $8.40 per mmBtu from April 1, 2014.

China made a more modest reform, increasing non-residential natural gas prices by 15 percent, but prices will be higher at up to $10-$12 per mmBtu in many coastal provinces. MORE