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Recently, the \"Administrative Measures for the Planning, Construction, and Operation of Oil and Gas Infrastructure\" (hereinafter referred to as the \"Administrative Measures\") were officially issued, drawing considerable attention. Industry experts generally believe that this is a significant step toward deepening the reform of the oil and gas system and improving the oil and gas market framework; it represents a further refinement and implementation of the Energy Law in the oil and gas sector, and will serve as a \"milestone\" in the high-quality development of the oil and gas industry. The separation of operation and marketing has been further strengthened. It is understood that compared with the 2014 version of the \"Management Measures,\" the scope of application of the new policy has been expanded from natural gas infrastructure to oil and gas infrastructure, including facilities such as crude oil and refined oil pipelines that provide public services. This enhances the alignment with the business scopes of major pipeline companies, thereby facilitating their operations in accordance with laws and regulations. Furthermore, several experts stated that the key measure in the revision of the Management Measures is the mandatory separation of marketing and distribution operations. Duan Zhaofang, director of the Natural Gas Research Institute at the China Petroleum Economic Research Institute, explained that the \"Management Measures\" clearly define for the first time the category of entities \"responsible for the construction of main oil and gas pipelines\", and strictly limit their scope of operations by prohibiting them from engaging in competitive activities such as oil and gas exploration and development, import and export, production, and sales ； It is also stipulated that companies engaged in competitive businesses shall not participate in the investment and operation of main pipelines. By clearly defining the business boundaries between mainline pipeline transportation and production and sales, and breaking the monopoly structure of vertical integration, it lays an institutional foundation for the fair and non-discriminatory opening up of oil and gas infrastructure to all market participants. “Further strengthening the separation of operation and marketing by requiring a complete separation between the operation of main pipeline networks and competitive businesses upstream and downstream is a concrete implementation of Article 40 of the Energy Law, which states that \"it is necessary to encourage and guide various business entities to invest in energy development and utilization as well as energy infrastructure construction in accordance with the law, in order to promote the development of the energy market.\" ”Chen Meitao, director of the Petrochemical and Light Textiles Business Department at CCIC, said that the \"Management Measures\" emphasize supporting various forms of social capital, especially private capital, to invest in oil and gas pipeline projects in accordance with market principles. They encourage social capital that meets the required criteria in terms of qualifications, financing, and credit, particularly private capital, to participate in the construction of infrastructure such as oil and gas storage facilities and liquefied natural gas receiving stations. This will further boost the level and extent of participation by private enterprises in the construction of oil and gas infrastructure. In addition, the Management Measures outline clear reform measures for the provincial pipeline networks, which represent a key bottleneck in the operation of a unified national network. “Forcing the separation of pipeline transportation and sales operations lays an institutional foundation for achieving property rights separation when the time is right, and it encourages provincial pipeline networks to integrate into the **pipeline network in a market-oriented manner. These measures are aimed at overcoming the ‘last mile’ in the operation of pipeline networks, enabling **efficient connection between main pipelines and provincial-level networks, and ultimately achieving fair access to and unified management of infrastructure. ”Duan Zhaofang said. Supervision and management have been further improved. Compared with the 2014 version of the Management Measures, the new policy focuses on implementing the requirements of the Energy Law regarding strengthened industry supervision and management, with a dedicated chapter on supervision and management. Yang Lei, deputy director of the Institute of Energy at Peking University, explained that on the one hand, the \"Management Measures\" include a dedicated section on supervision and management, stating that the energy authorities of provincial-level and higher governments, as well as other relevant departments, should strengthen supervision and inspection in accordance with their respective responsibilities, thereby once again emphasizing the important role of contracts in the operation of oil and gas infrastructure ； On the other hand, Articles 36 to 44 clarify the legal responsibilities that should be borne for various illegal acts, and specify quantitative penalty standards. Li Guang, director of the Natural Gas Institute at the China National Petroleum Planning & Design Institute, explained that the \"Management Measures\" establish a credit supervision mechanism. They call for the creation of credit records for all entities involved in the planning, construction, and operation of infrastructure, and for the implementation of incentives for those who abide by rules and regulations as well as constraints on those who fail to do so, thereby providing important support for maintaining a fair and orderly market competition environment. In addition, the \"Management Measures\" establish corresponding penalty measures for nine types of behaviors, including violations of planning regulations, illegal construction, failure to separate pipeline transportation from sales as required, and failure to provide services or refusing to do so without proper reasons, thereby enhancing the level of constraint and enforcement. In particular, Article 40 stipulates that if infrastructure operation companies and service users have entered into service contracts but fail to fulfill their obligations, resulting in supply disruptions or significant fluctuations that severely affect the stable operation of the market and supply security, penalties of varying degrees will be imposed depending on the severity of the situation. This helps to ensure that all relevant parties assume their responsibilities for maintaining supply and thus safeguarding oil and gas supply security. “The new regulatory mechanisms create a cohesive enforcement framework in conjunction with the regulatory requirements for the operation of energy infrastructure outlined in the Energy Law, thereby advancing the legalization of the regulatory system. This not only meets the Energy Law’s requirements regarding regulation of natural monopoly sectors but also provides a legal basis for effective oversight of these sectors. Together with the Measures for the Fair and Open Regulation of Oil and Gas Pipeline Facilities, which was upgraded to a departmental regulation during the same period, these efforts reinforce the achievements of the market-oriented reforms in the oil and gas pipeline sector. ”Chen Meitao said. In Duan Zhaofang’s view, the detailed and strengthened disciplinary measures provide regulatory authorities with clear bases for law enforcement, significantly enhancing the deterrent effect and practicality of the Management Measures; they constitute a decisive guarantee for ensuring that these regulations are effectively implemented. The innovation focus has been further enhanced. The reporters noted that the new Management Measures include provisions on technological innovation and standard development, encouraging research, development, demonstration, promotion, and industrialization of \"fundamental, critical, and cutting-edge technologies, equipment, and new materials\" in the field of oil and gas infrastructure. It also supports the application of digital and intelligent technologies, and calls for the establishment of an industry standard system suitable for a green and low-carbon transition. “Currently, new business models such as pipeline hydrogen transport and amine-alcohol transportation are emerging at an accelerated pace, and digital upgrading has become a key approach to improving the efficiency of pipeline networks. ”Chen Meitao said that the relevant provisions of the Management Measures provide a policy basis and institutional framework for the aforementioned innovative practices. Driven by technological innovation, oil and gas infrastructure is gradually developing into a form of \"new quality productivity,\" facilitating the upgrade from a \"national network\" to an \"intelligent network.\" This approach helps achieve the goals set out in the Energy Law to promote high-quality development in the energy sector. “The introduction of the \"Management Measures\" represents an important \"milestone\" in the process of high-quality development in the oil and gas industry, and it will effectively enhance the resilience of this industry. We believe that as relevant institutional regulations continue to improve, China’s oil and gas industry will surely regain new vitality and make its due contribution to achieving the great goal of national rejuvenation over the course of a century. ”That’s what Yang Lei said.