Speaking at the "2005 China International Natural Gas Summit", Wu Guihui, deputy director of Energy Bureau of National Development and Reform Commission noted that China will entirely open its natural gas industry.

Wu noted that the exploitation, pipeline construction, and the downstream market will all be open and foreign investment is welcome. While depending on domestic supply, China will also import natural gas from overseas sources.

Cooperation between China's natural gas industry with foreign counterparts are quite limited. Currently, except for the cooperation between China National Petroleum Corporation (CNPC) and Shell in exploring Changbei gas filed, Sell and Unocal have withdrawn from the natural gas project in East China Sea; Shell, Exxon Mobil and Russian Gazprom Corporation have also withdrawn from West-East natural gas transmission project.

Wu also said that Chinese government has also started to prepare for the legislation of oil and natural gas business, which, together with industrial policies concerning the natural gas operation, will help to improve natural gas policies on pricing, taxation and supervision.

By People's Daily Online