06 November 2012 09:17 [Source: ICIS news]
The National Development and Reform Commission (NDRC),
The new policy, which will take effect from 1 December 2012, increases the number of “preferred” users to 12 from four in the previous policy issued in 2007.
The additions to the group of “preferred” users include manufacturers in the construction materials, electromechanical, light textiles, petrochemicals and metallurgy industries; hydrogen production projects fuelled by natural gas; and cargo ships travelling on rivers, lakes and short-distance marine routes especially for liquefied natural gas (LNG), the document showed.
Most of the above were categorised as “allowed” users in the 2007 policy.
Other newcomers to the “preferred” category are coal bed methane (CB) or coal gas-fuelled power plants, central heating utilities and gas-fuelled air conditioners, the document indicated.
The increase in the group of “preferred” users shows that
The country is expected to produce a total of 154.6bn cbm/year of natural gas by 2017 and to import 162.4bn cbm/year by 2017, according to estimates by C1 Energy, an ICIS service in
The government also supports the construction of gas storage facilities for peak shaving purposes in urban areas.
“Gas storage facilities specifically refer to storage tanks for LNG and compressed natural gas [CNG]. The government aims to encourage enterprises to better allocate their resources to guarantee supply,” said Jiang Xinmin, deputy chief at the Energy Research Institute of the NDRC.
In addition, the country will speed up reforms on pricing mechanism of natural gas, the document indicates.
“Gas pricing reform is inevitable in the future, in order to better allocate gas supplies in
The government has conducted a pilot scheme of natural gas price reform in south
The government will also establish a price linkage mechanism that can reflect changes in both upstream and downstream sectors of the gas industry, the document showed.
Regions with distinct seasonal differences in gas consumption are encouraged to adopt differentiated gas prices for different seasons or supply frequencies, so as to rationalise gas usage, the document indicated.
“The government may adjust gas prices according to supply shortages during consumption peaks, to remind consumers of rational consumption,” Jiang said.
The new policy also states some suggestions on developing gas-fuelled projects with higher performance ratios.
Additional reporting by Fanny Zhang
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