Oil and Gas Market Reform Was Inevitable in China

On December 7th, West-east pipeline start to work with the third party. China National Petroleum Corporation （CNPC） sign a framework agreement with Guanghui energy. Guangghui Energy is currently the only one private energy enterprises, with “coal, oil, gas,” three kinds of resources at the same time. The cooperation way is that west east pipeline company collect the corresponding fees from Guanghui energy. According to the belt and road policy, more and more Oil and gas products can be used in the projects, such as oil and gas pipeline, pipe valve and other accessories. Oil and gas market need to be changed on the basis of current economy development.

More and more private enterprise work with CNPC and Sinopec

China National Petroleum Corporation （CNPC）cooperate with private enterprise on oil and gas pipeline for the first time. The project will greatly enhance China’s oil and gas market status and influence. It can optimize the energy structure, and improve the ecological environment. More and more private enterprises will sign forwarding agreement with CNPC and Sinopec, so that promote the reform process of oil and gas market.

The natural gas will become the third major energy source after coal and oil

Natural gas market reform is continuously accelerating without any obstacles. In the forum on energy transformation, the forum focus on the natural gas market reform. In the process of energy transformation, the proportion of natural gas and other clean energy will continue to increase. By the end of the 13th five years plan, natural gas will account for 10%-15% of China’s primary energy consumption. And the consumption proportion can reach to 15% by 2030. Thus natural gas become the third major energy source after coal and oil. We should adhere to the direction of market reform, and mobilize the all parties’ enthusiasm to develop oil and gas resources, national energy bureau deputy director said.

China’s oil and gas market reform

With the belt and road initiative deepening, oil and gas market will become the inevitable reform, such as the interconnection of oil and gas pipeline, the separation of pipeline transportation, the connection of pipe network and LNG terminal.