China's natural gas capitalizes on opportunities

As mentioned above, the promotion and development of natural gas in China has a wealth of application scenarios and significant systemic advantages. However, it should be noted that the downstream application of natural gas is still faced with high cost, insufficient market competition and low awareness of various uncertainties, and the pace of supporting policies or too fast or lagging has deepened these uncertainties. Therefore, this report argues that future downstream gas industry policy recommendations need to focus on the following areas:

No matter which market segment the development of natural gas focuses on, it is necessary to reflect the clean, efficient, safe and flexible value of natural gas in the market pricing mechanism, and realize the internalization of external costs. The contribution of natural gas to reducing emissions and improving system efficiency needs to be reflected in price comparisons with other alternative energy products such as coal.

Provide tax, equipment and gas price subsidies to encourage the transition from coal to gas in promising industries and regions; It also makes pipeline and distribution pricing transparent, encourages the development of sound standards and processes for innovative business models such as LNG supply, and encourages competition in energy supply.

Strengthen market education, promote successful cases of coal to gas transition to increase market awareness, and provide capacity building support to enable end users to make better decisions on electricity use.

We expect that the implementation of the above points will be able to promote the marketization process of the entire natural gas industry, so as to further promote the goal of the "13th Five-Year Plan" natural gas development. We hope to take this opportunity to promote the attention of various fields to natural gas, discuss the future of the natural gas industry and seek new cooperation opportunities, and make our own contribution to the reform of China's energy market and the green cause.