Liu Yijun: Natural gas supply emergency plan should be strengthened

-- Visiting professor of China University of Petroleum

Liu Yijun

Affected by international natural gas prices rise all the way, domestic natural gas market demand growth, domestic natural gas is facing greater supply pressure, this year is the national oil gas pipeline network company completed a national network layout after the independent operation of a year, heating season of natural gas market trend is the focus of public opinion. Liu Yijun, a professor at China University of Petroleum, said in an interview with The China Economic Times that it is unlikely that there will be a large-scale "gas shortage" this winter next spring, the situation of tight supply will appear after the middle of December.

Reporter: the price of natural gas rises all the way in the second half of the year, the probability of cold winter is larger, will there be gas shortage this winter next spring?

Liu Yijun: China's natural gas market will face great pressure in the heating season this year. There is a high probability of cold winter in China. The epidemic situation in winter is still complicated. This winter cold early, natural gas consumption, coupled with the international market for natural gas supply continues to be highly tense, the price rose seriously abnormal, long association imported natural gas "ballast stone" role is obvious, in this year's special natural gas supply situation, highlighting the role of state-owned enterprises in the supply. The profitability of oil companies has been enhanced, upstream investment has increased, the supply of natural gas market has increased significantly, the national winter supply requirements are very strong, so the guarantee capacity is at a high level.

Photo by Xinhua

China's natural gas supply will be really tight after mid-December, but there will be a wide range of sustained "gas shortage". In extreme weather, domestic gas consumption may be locally short - term non-domestic gas consumption will be extremely tight. Geographically, the pressure of gas use in south China is relatively large, local areas may have short-term gas supply difficulties. This year's natural gas market situation can be summarized as: the most fully prepared, the most complex situation, the most difficult choice. The emergency plan of natural gas supply guarantee should be strengthened.

Reporter: Recently, some city gas companies called for straightening out the price. How to promote the reform of natural gas price?

Liu Yijun: Under the current situation of high international natural gas prices, the domestic price mechanism is smooth. If the temporary need of natural gas this winter, the need to import extra high prices will have an impact on importers gas users. Further rationalization of natural gas prices will be conducive to stimulate the enthusiasm of suppliers.

In recent years, the price reform of natural gas has been advancing steadily. At present, the price mechanism of residential gas has been improved significantly, especially this year, when natural gas resources are relatively tight, the price of residential gas has been raised. In terms of non-residential gas consumption, some regions have established a separate preferential pricing mechanism for incremental gas consumption. Resource providers users can negotiate prices sign new gas consumption contracts based on incremental additional demands. At the same time, after the establishment of the National Oil Gas Pipeline Network Company, the new pipeline transportation price will be implemented in January next year, the opening to the third party will also be significantly improved than before. The construction of peak regulation capacity coordination will be improved, the pipeline gas storage will be increased. However, the natural gas price adjustment mechanism still needs to be improved, the establishment of the mechanism should be given priority when promoting the price reform.

Reporter: This year is the year when the National oil Gas Pipeline Corporation forms a network operates independently. What challenges will it face?

Liu Yijun: This year, the supply protection situation is severe, the internal management coordination of the National oil gas pipeline network companies have to go through new tests. The current reform should continue to be promoted, future development needs should be seen in practice, some paths should be explored for the future. For example, the pricing of pipe network should continue to be reformed, especially with the market-oriented configuration of pipe capacity products as the starting point to promote the expansion of third-party services. In general, the reform principle of pipeline network companies is to delimit the operation boundary, accelerate the exploration improvement of relevant systems in operation, accelerate the construction of pipeline service platform, so as to promote the deepening of natural gas market reform.

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Source: China Economic Times

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