This winter, the natural gas industry is having its spring.
On 2nd of December, the China-Russia natural gas pipeline was finally completed and efficially put into operation. On the second day, PetroChina announced that its daily output of natural gas achieved over 100 million cubic meters through its 23 gas storage facilities, which created a new record. A week later, on 9th of December, the National Pipeline Network Company was established. These positive news in the nature gas sector replacing tight gas supplies in previous years, could be a signal shows that this year and beyond, gas tensions will be a thing of the pistachio believes that in the long term, we can maintain an optimistic of healthy development of the natural gas industry. Start with the China-Russia pipeline, the volume of natural gas will reach 5 billion cubic meters in 2020 and be increased to 38 billion cubic meters annually in the future, which will undoubtedly greatly improve China's natural gas supply capacity. Due to the lack of oil and gas in China, PetroChina, Sinopec and CNOOC on the one hand increase domestic exploration and development of, and on the other hand do everything possible to increase import in order to increase the supply of natural gas. At present, China has become the world's largest natural gas import country. Compared with other import channels, pipeline imports are the most stable and convenient. Once the China-Russia natural gas pipeline runs at full capacity, 38 billion cubic meters of natural gas will cover a tenth of the current annual consumption of natural gas. Especially in the east area, the rate of gas supply shortages will be greatly reduced by the China-Russia gas pipeline. After that, the news about the daily production of gas storage tank has exceeded 100 million cubic meters received less attention compared with the officially opening of the China-Russia pipeline. In fact, industry insiders know that information provided by this news is just as important in reducing or even avoiding the gas crunch. Natural gas consumption is greatly influenced by the season. The common principle which is called peak-valley difference means that less consumption in summer and more consumption in winter. Number of peak-valley difference is huge in China, for example, the difference of natural gas supplies in summer and winter is about 10 times in Beijing. The world's common practice to reduce peak-valley difference is to build gas storage units to store gas during the low supply season and put it on the market at peak times. The most efficient way to store gas is to inject it into the ground and then take it out at use time. In the past, one of the important reasons for the shortage of natural gas supply in winter is the lag in the construction of gas storage facilities. The first gas storage facility in China, Tianjin Dazhangtuo gas storage facility, was put into operation in 2000 with a maximum daily gas recovery capacity of 10 million cubic meters only. Over years, PetroChina has built 23 gas storage facilities, with 8.19 billion cubic meters of gas injected. What is the meaning of over 100 million cubic meters of natural gas recovery per day from gas storage facilities? It means the amount of gas used in a day's living for 67 million households, which is undoubted to relieve the pressure of gas supply in peak period. Finally, the establishment of National Pipeline Network Company has a huge influence in natural gas field. As a major reform measure in the oil and gas field, the establishment of a unified National Pipeline Network Company will definitely promote the marketization process of the whole industry. According to the general rule of this round of reform, the two ends of the oil and gas industry will be opened and the middle part will be controlled, which means, the company will form a unified national network to provide pipeline transportation services for all enterprises. Exploration and development at upstream and sales at downstream are fully opened to competition. This market-oriented reform will certainly make the whole industry glow with great vitality and finally benefit all consumers. All facts have proved that only sufficient competition can increase supply capacity and improve services, and make price become reasonable step by step. It is the same thing to natural gas, competition on upstream can enrich the supply, and the marketize on downstream can provide consumer more alternatives with better services and more reasonable price. There are reasons for people to believe that with the establishment of National Pipeline Network Company, the opening and competition of the upper and lower ends will not be far away.