Policy analysis and suggestions for promoting direct supply of natural gas to large users

At present, the large user direct supply commonly talked about in the industry is derived from the National Development and Reform Commission's "Opinions on Accelerating the Utilization of Natural Gas" (hereinafter referred to as the "Opinions") in June 2017. The Opinions put forward that "improve the natural gas market and establish a mechanism for users to independently choose resources and gas supply paths." Where users independently choose resources and gas supply routes, they should conform to local urban and rural development plans and special plans for natural gas and gas development, and local people's governments should strengthen overall coordination and support."

1.3 Direct supply Mode for large users

The way of the implementation of large user direct supply must be related to whether the user's gas can be interrupted, the local gas special planning, the operation situation of urban gas business enterprises and the user structure. There are 2 modes:

(1) "Direct purchase + transportation" mode: large users sign natural gas purchase and sales agreements with upstream units, and purchase gas through the "one network" that has been built by local urban gas operators. It is represented by Chongqing, Guangdong and some parts of Fujian.

(2) "Direct purchase + new construction" mode: large users sign separate natural gas purchase and sales agreements with upstream units, and build gas pipeline facilities through joint ventures with multiple investment entities, and use gas from separate openings in the gas pipeline network. Represented by parts of Jiangsu Province.

The author believes that the first model can be coordinated with the gas franchise system, which is in line with the national "X+1+X" reform direction, and is the future trend of market-oriented reform and development of the industry; However, the second mode contradicts the national reform ideas, the "one network" planning of pipe network facilities and the "Urban Gas Management Regulations", and must properly handle the relationship between the government, large users, upstream units and local urban gas operators, and should use the rule of law thinking and rule of law to promote the direct supply of large users and release the reform dividend.

Second, "direct supply" policy analysis

2.1 Relevant policies at the national level

Since 2013, the National Development and Reform Commission has introduced some policies to encourage the direct supply of natural gas by large users in promoting the market-oriented reform of natural gas prices.

2.2 Relevant policies at the local level

Third, the analysis of "direct supply" mode

3.1 Conflict analysis between owner-built "direct supply pipeline" and "gas franchise system"

Since the implementation of the gas franchise system, it has played a positive role in regulating the investment, construction and operation management of urban gas infrastructure, and promoted the development of urban gas market to a certain extent, which can be described as "great contributions". The owner's self-construction of "direct supply pipeline" in the area where the pipeline has been covered and the franchise has been granted conflicts with the current national regulations, is not encouraged by the national policy, and violates the urban pipeline gas franchise system, as analyzed below.

First, the state only encourages the direct purchase and sale of natural gas between upstream and downstream, rather than referring to the repeated planning and construction of gas pipelines. "Opinions on Accelerating the Utilization of Natural Gas (draft for comment)" pointed out: "Improve the urban gas franchise policy, open up the direct supply of large users." At the time of the original discussion, because the expression contained the intention of allowing natural gas suppliers to repair pipelines and exclusively supply natural gas for the city's industrial large users, it violated the "one grid" special gas planning of the unified urban planning layout, and also damaged the interests of the urban gas business enterprises, and was clearly opposed. Therefore, the expression of "direct supply" cannot be found in the final official Opinions. According to the requirements of planning laws and regulations, the construction of gas facilities should comply with urban and rural planning and urban gas special planning to avoid repeated planning and investment waste.

Second, the gas franchise agreement stipulates the investment and construction rights of urban gas business enterprises to gas facilities other than the owner's exclusive property rights. In the "Model Text of Pipeline Gas Franchise Agreement" (GF-2004-2502) published by the former Ministry of Construction, it is clear that urban gas business enterprises legally granted by the government enjoy the exclusive right to operate pipeline gas business within the scope of franchise, and have the right to invest, construct and operate pipeline gas within the scope of franchise. The right is exclusive and unique.