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However, one of the problems that will inevitably be encountered is the disorder of competition. As an important choice for energy supply, a "full circulation" natural gas supply market is the ideal model. However, the reality is that CNPC, Sinopec and CNOOC have no unified plans for the Chinese market. Each has its own gas field and each has its own network. A pipeline transmission market that does not communicate with each other leaves huge hidden dangers for the future supply of natural gas in cities.
Three strong competitions have been launched to “build pipelines to sell their own production gas.†This kind of Chinese oil industry production method that has grown accustomed to under the planned economic system and has become accustomed to has become a law of increasing competition in the Chinese natural gas market. Under the support of this rule, West-East Gas Transmission, LNG, and the East China Sea Gas Field are all pushing hard.
In the field of West-East Gas Transmission, China National Petroleum Corporation is still the overlord. "Who invests and who uses it" has become an iron law in CNPC's natural gas pipeline industry. The total length of the West-East Gas Pipeline is approximately 4,000 kilometers, and the planned annual gas transmission volume is 12 billion cubic meters. It is the longest natural gas pipeline in China. As a result, Sinopec and CNOOC can only find new ways.
In the rapidly expanding natural gas market, CNPC inevitably launched a full confrontation with CNOOC and Sinopec’s LNG. Just on the second day of commercial operation of the West-East Gas Pipeline, its main target market, Shanghai, is facing competition from competitors. The scale of gas supply for the CNOOC LNG project far exceeds the supply of gas from the West-to-East gas transmission of PetroChina to Shanghai.
“Our expansion of LNG projects in Shanghai, Zhejiang, and Jiangsu is not inconsistent with PetroChina's West-East Gas Pipeline. Of course, from the perspective of the company itself, there must be certain competition.†CNOOC News Spokesperson Liu Junshan described the relationship between the two to reporters.
If LNG supplies gas before these projects are put into production, the meat of CNPC to the mouth will have to fly away. As a result, after the West-to-East Gas Pipeline project was fully operational, CNPC finally freed up its efforts and put more effort on the LNG project.
The natural gas collected by Sinopec in the Donghai Gas Field is also one of the competitors of PetroChina West Gas. From these seemingly messy history, the original blessing of natural gas will certainly evolve into a natural gas mess.
Insufficient supply of gas causes "gas shortage"
Just when three companies were competing for the final gold one kilometer, many people stood up and poured cold water.
“The natural monopoly nature of natural gas operations has led to the failure of the market to allocate resources.†Zhu Xingshan, deputy director of the Energy Development Research Institute of the State Development Planning Commission, believes that “the results of disorderly competition may appear like the immediate “electricity shortageâ€.†Gas shortages, leading to the absence of market players."
China needs to establish a complete natural gas industry management system (1)
Wu Guihui, deputy director of the Energy Development Bureau of the National Development and Reform Commission, recently revealed that China's natural gas industry will be fully open to the outside world. The upstream mining, midstream pipeline construction and the entire industrial chain of the downstream market will be open to the outside world and foreign investors are encouraged to invest in China.