Oil And Gas Market Reform Comes From Pudong -- Exclusive Interview With Ye Guobiao, Chairman Of Shanghai Petroleum And Natural Gas Trading Center

Reform is the gene that flows into the blood since the 30th anniversary development and opening up in Pudong. One innovation after another is to take the lead and try first, and it has accumulated a wealth of money for China's reform and opening up.

In June 2014, the sixth meeting of the central financial and economic leading group called for actively promoting the reform of the energy system, and working hard to formulate the overall plan for the reform of the electricity system and the structural reform of oil and natural gas. China's oil and gas reform is deepening. A year later, the national development and Reform Commission and the State Energy Bureau directly directed Shanghai's oil and gas trading center approved by the Shanghai municipal government. The national energy trading platform registered in the Shanghai free trade pilot area has become an important carrier to boost China's energy market reform. On the day of its formal operation, Xu Shaoshi, director of the national development and Reform Commission, pointed out that the construction of Shanghai oil and gas trading center is not only an important achievement in the marketization reform of oil and gas prices, but also an important support for deepening reform.

In Pudong, which is full of reform genes, Shanghai's oil and gas trading center has made a whirlwind of oil and gas market reform with policy advantage, location advantage and shareholder advantage. Why is Shanghai's oil and gas trading center attached to Pudong? In this regard, twenty-first Century economic report reporter interviewed Ye Guobiao, chairman of Shanghai petroleum and natural gas trading center.

Ye Guobiao. Data map

Twenty-first Century: trading center regards location advantage as one of the three comprehensive advantages. What is the starting point of choosing trading center in Pudong, Shanghai?

Ye national standard: in 2018, Li Qiang, Secretary of the Shanghai Municipal Committee, proposed that we should accelerate the construction of the "five centers" of international economic, financial, trade, shipping and scientific and technological innovation, and strive to build Shanghai into an outstanding global city and a socialist modern international metropolis.

Pudong is the "main battlefield" that carries the construction of "five centers" in Shanghai. It is the window of China's reform and opening up and the epitome of modernization. In April 2019, Zhang Jianhua, director of the State Energy Bureau, pointed out that the biggest advantage of the trading center was location advantage when inspecting and investigating the oil and gas trading center in Shanghai.

The Trading Center settled in Shanghai and gained the advantageous geographical advantages and favorable conditions. First, the development of energy is inseparable from the support of financial elements, such as the headquarters of financial institutions such as China foreign exchange trading center, Shanghai stock exchange, Shanghai futures exchange, Shanghai stock exchange, Shanghai insurance exchange and major banks, which are set up in Pudong and have built up omnidirectional financial services. Secondly, the development of energy is inseparable from the support of ports and shipping, and Shanghai. We will strive to build an international shipping center this year and constantly improve the modern shipping service function. In addition, the degree of internationalization of Shanghai provides favorable conditions for the development of energy, such as information flow, capital flow and talent flow. Pudong is also an important link linking domestic and international cooperation. Together, these are the geographical advantages of Shanghai's oil and gas trading center.

Twenty-first Century: what is the significance of the support from the Shanghai municipal government and policy to the development of the trading center?

Ye Guobiao: since the establishment and operation of the Shanghai petroleum and natural gas trading center, it has received the concern and support of governments and leaders at all levels. In January this year, the construction and development of Shanghai petroleum and natural gas trading center and Shanghai international energy trading center were written into the outline of the Yangtze River Delta regional integration development plan issued by the Shanghai municipal government. Different from several other economic zones in China, the Yangtze River Delta is the only economic zone to put forward the "integration" of regional development. First of all, in Shanghai, Shanghai petroleum and natural gas trading center and Shanghai international energy trading center have different functions, but they are complementary. They can complement each other, complement each other and interact with each other to achieve mutual benefit. In the context of the integration of the Yangtze River Delta, our two agencies should join forces to enhance the market influence and pricing power of Shanghai and the Yangtze River Delta in the domestic and international oil and gas fields. Secondly, China's oil and gas marketization reform is in practical operation and critical stage. The Yangtze River Delta is in relatively mature condition. The opportunity for regional integration development is promoting the main energy trading platform of the Yangtze River Delta, including the Shanghai petroleum and natural gas trading center, to form a bond with each other, so that the results of oil and gas market reform will be the first to fall in the Yangtze River Delta region and form the "Yangtze River Delta sample".

Twenty-first Century: Pudong's thirty year old Shanghai oil and gas trading center, which has been running for three years, is regarded as a "new recruit". How will the trading center give full play to its own advantages, integrate into Pudong and integrate into the reform, opening up and construction of Shanghai?

Ye Guobiao: Shanghai petroleum and natural gas trading center is continuing to innovate trading mode, optimize trading rules, increase trading varieties, expand transaction scale and enhance transaction function in accordance with the development idea of "first gas after oil, spot first, medium and long term, first domestic and international". This year, the trading center will make full use of its geographical advantages based on Shanghai to make positive attempts and exploration in the linkage and internationalization development.

First, we will actively link up with the financial institutions such as the Shanghai futures exchange and the Shanghai clearing house to explore cooperation in the current linkage and the current market interaction. Take natural gas as an example, at present, there is only spot market in China's natural gas field, no futures market and imperfect market system, and cooperation with the previous period will help to generate a new natural gas futures market. Secondly, we are also actively promoting the exploration of the medium and long term trading system and trading mode of refined oil with the Shanghai clearing house, and building a more sound energy trading market system.

Second, the establishment of the new port area of China (Shanghai) free trade pilot area provides an opportunity for the internationalization of Shanghai oil and gas trading center. The internationalization of the trading center can not be separated from policy, financial and legal support. The new port area has provided an important platform. We hope that under the guidance of the government, the important financial institutions and energy companies in the United Nations will build an international energy trading and service platform in the new port area.

      In addition, we also hope to win the support from the Shanghai municipal government and local energy leading enterprises this year, and promote the pilot separation of natural gas transportation and marketing in Shanghai as soon as possible, take the lead in forming the "X+1+X" market structure and play a leading role in the whole country. After the separation of transportation and marketing, we should coordinate the upstream and downstream enterprises to participate in the process of promoting the marketization of natural gas prices and consolidate Shanghai. The oil and gas trading center has a predominant position.