Launceston, Australia — China’s push to use more natural gas over winter in a bid to cut air pollution is running into the harsh realities of rising prices and limited supplies of the cleaner fuel. In a signal of what may become more government intervention in the natural gas market, China’s state planner ordered eight regions to meet with natural gas producers, liquefied natural gas (LNG) terminal operators and traders. The meetings are effectively a warning by the National Development and Reform Commission (NDRC) to the various players in the natural-gas sector to ensure prices don’t rise too much, even as rising demand causes supply shortages. Beijing has encouraged China’s provinces to switch from coal to natural gas for both residential heating and industrial processes over winter as part of efforts to limit the smog that has, in past years, choked cities, including the capital. In some ways, the move has been too successful, with the industry-heavy provinces of Hebei and Shand...

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