(Yicai Global) Dec. 4 -- A recent shortage of natural gas has prompted many localities to restrict supplies, with, e.g. Shijiazhuang, the capital of east-central China's Hebei province, even activating its natural gas supply contingency plan.

The gas shortfall has lately propelled the price of liquefied natural gas (LNG) to ever-new highs.

In view of the current market situation, the local National Development and reform Commission (NDRC) will convene a price warning meeting for liquefied natural gas (LNG) prices today to ensure that the market price for the commodity remains basically stable in the peak time of winter, Securities Daily reported today.

With natural gas in short supply, Hebei province and many cities face a constricted market supply of the fuel. Hebei's NDRC triggered the provincial gas demand-side management mechanism and activated an orange alert for the province's natural gas supply from midnight on Nov. 28, meaning the gas supply in the province is already in a severe state of shortage. The orange alert is second only to a red alert, and means that the gap between supply and demand in the province has reached 10 to 20 percent.

Natural gas shortages have pushed LNG prices into the stratosphere since September. The price has changed each day since the heating season commenced. On Dec. 1, the listing price of LNG hit a new acme of USD1,424 (CNY9,400) per ton, while average LNG prices have also exceeded CNY7,000 per ton in other cities.

The industry believes that 'replacing coal with natural gas' and more extensive clean energy use will cause natural gas consumption to burgeon, even as LNG prices are poised to enter a growth cycle.

To standardize the aberrant fluctuations of liquefied natural gas (LNG) prices and ensure basically stable prices for the fuel during the winter peak, the NDRC will detail pricing agencies in provinces and cities to convene natural gas price policy warning meetings on Dec. 4, reminding liquefied natural gas producers and circulators in the areas and societal organizations to stiffen price self-discipline and standardize their pricing activities, the agency said.

Gas enterprises must not spread rumors about price hikes, engage in malicious stockpiling, practice price fraud or unlawfully collude with others to manipulate market prices and must also not abuse their market dominance, sign monopoly agreements, or give effect to price violations and price monopolizations committed by others, since otherwise price authorities will severely investigate and sanction offending enterprises based on the Price Law, the Antimonopoly Law and other relevant provisions, NDRC stressed in the notice.