China Issues Guiding Opinions on Improving Natural Gas Pipeline Transportation Pricing Mechanism

Strategic Insights -

The National Development and Reform Commission and the National Energy Administration recently issued the "Guiding Opinions on Improving the Price Mechanism of Natural Gas Pipeline Transportation in the Province to Promote High-Quality Development of the Industry." This move is aimed at deepening the reform of the oil and natural gas market system and improving the price governance mechanism. The Guiding Opinions require all regions to improve their intra-provincial natural gas pipeline transportation pricing mechanisms, effectively connecting with the inter-provincial natural gas pipeline transportation pricing mechanism and helping form a "national unified network."

Key Takeaways:

  • The Guiding Opinions clarify that intra-provincial natural gas pipeline transportation prices are set by provincial development and reform departments.
  • Provincial energy authorities are mandated to oversee the planning of natural gas pipelines within their provinces, optimizing pipeline layouts, reducing transportation layers, and avoiding duplication.
  • The Guiding Opinions require strengthened review and approval of investment projects, strictly controlling projects that add unnecessary intermediate links and hinder the efficient use of resources.
  • Intra-provincial natural gas pipeline transportation prices will be determined using the "allowed cost plus reasonable profit" method.
  • The Guiding Opinions outline requirements for reducing gas supply costs, regulating market order, and promoting fair and open operations.
  • The National Development and Reform Commission and the National Energy Administration will guide local governments to systematically evaluate the construction, operation, and price management of natural gas pipelines within their provinces.

Statistics:

  • No specific statistics are mentioned in the source material.

Sources:

  • [State Council of the People's Republic of China: https://www.gov.cn(lianbo/bumen/202508/content_7034901.htm]