Discussion on natural gas development! Seeking advice from experts

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This post was last edited by hnan on 2017-5-3 08:54. The factors that support the rapid development of LNG supply points are discussed from the following three aspects. I. **’s energy policies have promoted the development of natural gas. Since the National Development and Reform Commission issued the \"13th Five-Year Plan for Energy Development\" and the \"13th Five-Year Plan for Natural Gas Development,\" various regions in ** have responded by formulating local energy and natural gas development plans as well as guiding principles, thereby fostering the advancement of natural gas utilization in those areas. At the 2017 International Forum on the Technological Development of the LNG Industry and the Second National LNG Industry Alliance Conference, Guo Jiaofeng, a researcher at the Institute of Resources and Environmental Policy of the Development Research Center of the State Council, pointed out: “In the next 5 years and beyond, China will face even greater challenges related to air pollution and the need to address climate change. Among clean energy sources, natural gas is by far the most practical, feasible, and promising option at present.” The abundant natural gas resources should be fully exploited, and the share of natural gas in consumption should be significantly increased; efforts should be made to ensure that by 2020 natural gas accounts for 10% of total primary energy consumption, thus becoming the third largest source of energy after coal and oil. ”It is estimated that China’s natural gas consumption will reach 325 billion cubic meters in 2020, an increase of 55.5% compared to 2016. Natural gas consumption can be driven by upgrading industrial fuels to promote the shift from coal to gas, increasing the gasification rate to develop urban gas supply, accelerating the transition from oil to gas in transportation, and for power generation. With the introduction and implementation of a series of policies at the national and local levels, as well as the improvement of policies and regulations governing LNG point supply, the ongoing deepening of reforms in the oil and gas sector and in the natural gas pricing mechanism have contributed to the stability of LNG supplies. This has also created opportunities for rapid growth for the LNG point supply industry that has developed in recent years. II. Strengthened environmental protection efforts are driving the development of LNG point supply. In recent years, as air pollution has become increasingly severe, new versions of the \"Environmental Protection Law of the People’s Republic of China\" and the \"Air Pollution Control Law of the People’s Republic of China\" have been introduced, imposing very strict requirements on enterprises regarding environmental protection. Recently, the Ministry of Environmental Protection has conducted environmental inspections in various provinces, autonomous regions, and municipalities directly under the Central Government, resulting in an unprecedented level of focus on environmental protection across the country. To address the increasingly severe environmental problems, **a series of favorable policies have been introduced, such as subsidies for switching from coal to gas, from oil to gas, for LNG vehicles, and adjustments to the value-added tax rate on natural gas. These policies aim to encourage enterprises to adopt and utilize natural gas. In particular, subsidies for switching from coal to gas, from oil to gas, and for LNG vehicles provide strong support for the development of LNG supply systems, and they constitute the foundation for such development. III. Under the new normal of economic development, there is an urgent need among users for LNG on-site supply. At present, under this new economic landscape, domestic enterprises have low added value and limited room for maneuver; in the context of the shift from coal to gas, these enterprises can only turn to inexpensive LNG supply sources in order to reduce their operating costs. Since pipeline gas prices are fixed and there is little competition, such prices are unlikely to change easily, which creates opportunities for the development of on-site LNG supply projects, and enterprises are thus enthusiastic about adopting this approach. For current LNG on-site supply customers, the stability of the gas supply and its price are the key factors that determine a company’s choice to opt for LNG on-site supply. Although the reforms related to oil and gas, as well as the pricing mechanism for gas, are not yet clear at present, proposals for such reforms have been made at the **level recently. Additionally, the rapid development of LNG in China has contributed to stability in the supply of LNG as a fuel source. In short, under the new normal of the economy, along with increased emphasis on environmental protection and the requirement to replace coal with gas, companies, while taking into account their operational conditions, have an urgent need for LNG supply on a point-to-point basis. Therefore, in response to the requirements for natural gas development outlined in the **13th Five-Year Plan for Energy Development** and the **13th Five-Year Plan for Natural Gas Development**, the comprehensive utilization of natural gas has been promoted. **It is necessary to streamline regulations and delegate power, accelerate internal reforms, break the monopoly on franchise rights, grant legitimate rights to LNG supply points, reduce gas prices, increase subsidies for natural gas vehicles, and turn the goal of promoting the use of natural gas into reality. Given the current trends in the development of LNG point supply, **the relevant regulatory authorities should formulate scientific guiding policies and establish comprehensive management systems, rules, and standards, so that LNG point supply can operate within a framework of laws and regulations. Gas industry associations should accelerate the development of standards and regulations suitable for LNG point supply, in order to provide technical support for relevant departments, gas companies, and natural gas users in developing such LNG point supply systems. For users who utilize LNG as a fuel source, it is necessary to make full use of the various favorable policies currently in place, such as those related to the transition from coal to gas, from oil to gas, the use of LNG in vehicles, adjustments to the value-added tax rates for natural gas, and reforms in the oil and gas sector. These policies should be taken into account when evaluating LNG supply projects in a scientific and comprehensive manner. For those enterprises that are already operating LNG supply facilities, it is important to strengthen the management of safe production and operation at these facilities in order to prevent safety accidents. Only in this way can the legitimate rights and interests of LNG suppliers be ensured, allowing the entire industry to develop in a healthy and safe manner; this also aligns with the current environmental protection policies aimed at replacing coal with gas. Reposted from the internet.