Natural gas pipeline network reform urgently needs to be "excited" and "live"

China should retain the ownership of the integrated company's infrastructure, but the control is completely independent, that is, to adopt a similar EU ISO model to split.

Since the reform and opening up, especially since the beginning of the new century, China's natural gas pipeline network and other infrastructure fields have made remarkable achievements, but there are also many problems in the system and mechanism. Domestic experts, scholars and industry insiders have different views on the urgency of reforms in infrastructure areas such as natural gas pipeline networks (referred to as midstream in the industry). Some people believe that China's natural gas infrastructure is still in its infancy, and it is possible to develop along the current path before reform is urgently needed; others believe that infrastructure such as natural gas pipeline networks has become a major obstacle to the development of the industry , We must pay close attention to advancing reform.

What are the institutional issues in China's natural gas infrastructure? How much influence do these problems have on the healthy development of the industry? What causes these problems? Understanding the above issues is the key to the reform decision.

(1) It is difficult for third parties to enter fairly and strengthen the monopoly pattern

(2) Too many levels of transmission and distribution links and excessive fees

(3) The lack of gas storage and peak shaving facilities affects the safety of gas supply.

Problems in China's natural gas infrastructure sector have seriously affected the industry's further healthy development and are not conducive to achieving the industry's goal of efficient, economical, safe, and stable supply of natural gas. Reform is necessary and urgent. So, how should it be changed? The general idea can be summarized as "excited" and "live".

The so-called "excitement" is to encourage compatibility in the system design, that is, the system design should make the enterprise's demands consistent with the reform goals. To put it bluntly, it is to make the industry reform goals naturally achieved in the process of the enterprise's pursuit of maximizing its own interests. Looking at the three issues, the fundamental reason is that the incentives in the system design are incompatible or the interests are different. Facts have proved that in this case, the "big stick" of regulation and supervision to suppress the failure of enterprises is less effective. We should change our concept and try to mobilize the enthusiasm of enterprises through "carrots". This can not only effectively reduce the difficulty and cost of reform, but also reduce unnecessary supervision.

The so-called "live" is to let go and let the market and enterprises play a leading role. The market is rarely designed by the government from the top down, but developed from the bottom up! Except for the measures and systems that must be introduced to achieve the midstream reform goals of the Chinese natural gas industry, all others can be preliminarily limited. It is necessary to "release water and raise fish" to leave a huge space for the market and enterprises. Practice has repeatedly proved that as long as enough space is given, the market has strong vitality and self-development ability. The successful experience of the development of the US natural gas market also proves this well.