Abstract: In this paper, we examine the relationship between energy reform and supply security and find that there is no inherent conflict. In the long run, the appropriate market, industry structure and infrastructure regulation on transportation and allocation of energy can increase supply security. However, the unreasonable price system and deficient market design do create a number of challenges during the liberalization programs. The energy security problems such as the involuntary rationing of demand and sudden increases in prices should be concerned about.