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The focus of energy price reforms is on natural gas; the \"dual-track system\" will come to an end. The plan for the adjustment and revitalization of the petrochemical industry, released on the evening of February 19, indicates that the introduction of a pricing mechanism for natural gas in China is accelerating. The plan states that our country should strengthen import and export supervision and improve the price formation mechanism for energy products. The oil pricing mechanism was introduced 2 months ago, and the next reform of the pricing mechanism will involve natural gas. An authoritative figure from PetroChina Group told The First Financial Daily that the trend in China’s natural gas pricing mechanism will be one in which the ex-factory prices of natural gas both domestically and internationally tend to become unified. Price reforms are accelerating. The natural gas industry chain is divided into three segments: upstream gas fields, midstream transportation, and downstream distribution. There are different prices for each stage and in different regions, and our country does not have a complete natural gas pricing mechanism. With the finalization of several large-scale domestic and international natural gas projects, the formulation of this mechanism must be brought forward as soon as possible. This year and in the coming years, large gas fields such as the Longgang Gas Field and the Puguang Gas Field will come online for production, while LNG from overseas and gas transported via pipelines from Central Asia will also be continuously imported into the country as supplementary sources of gas. An authoritative official from CNPC said that, based on current trends, the domestic and international prices of natural gas (at the factory) will converge. This means that the prices of LNG and pipeline natural gas imported from abroad will continue to be controlled, while the prices of natural gas produced within China are likely to rise. Natural gas prices in the Chinese mainland have always been low. According to public information, the price of natural gas at the Zhongyuan Oilfield is currently 1.298 yuan per cubic meter. The purchase price of LNG for use in the Guangdong region, as stipulated in contracts signed years ago, is around 1.6302 yuan per cubic meter; thus, natural gas imported from abroad is more expensive than that available domestically. The National Development and Reform Commission carried out reforms on the ex-factory price of natural gas in 2005. At that time, the ex-factory price of natural gas was divided into two tiers; gas supplied for fertilizer production enjoyed a discounted price of only 0.56 yuan per cubic meter ； The ex-factory price for stage 2 gas was set at 0.98 yuan per cubic meter at that time. “But this is only a proposal for setting the domestic natural gas ex-factory price, and it does not cover natural gas imported from abroad. ” A senior official from the China National Petroleum Planning Institute told reporters. Integration presents challenges. It is not easy to unify the ex-factory price of natural gas, as the development costs of natural gas vary from region to region; moreover, with oil prices currently low, it is difficult to increase prices. Achieving a unified price at home and abroad would also be very difficult for users to accept. Lin Boqiang, a professor at Xiamen University, told reporters that even when it comes to overseas sources, the extraction costs for natural gas from Turkmenistan differ from those of natural gas extracted in Myanmar. Moreover, the LNG previously ordered by our country was under long-term fixed-price contracts, making any changes unlikely. Rui Dingkun, a researcher at CIC Securities, also said that due to the price relationship between natural gas and oil, there is little room for an increase in domestic natural gas prices amid a sharp drop in crude oil prices. Similarly, the affordability of downstream users is also a challenge. Chen Lishan, a researcher at Yimao Information, said, “After the price increase, some gas users may opt for alternative products such as fuel oil and coal, which is not very favorable for the development of the natural gas industry.” ” Rui Dingkun said that given the large amount of work involved in determining price costs, it is not ruled out that prices will continue to be controlled for a while, with corporate profits adjusted through tax rates or a \"balance fund\".