Gas prices merge

On February 28, the National Development and Reform Commission announced that on April 1st, China's natural gas prices formally merged, and pilots let go of gas prices for direct supply users, and the reform of gas prices for fertilizers was implemented step-by-step. At the same time, this year will fully establish a system of residential gas use ladders.

The National Development and Reform Commission issued a notice and decided to combine the stock gas prices with the incremental valve station prices since the heating was basically completed on April 1. According to the current natural gas price formation mechanism, the price of the highest gate stations for incremental gas in each province will be reduced by RMB 0.44 per cubic meter, and the price of the highest stock price for gas stations will be increased by RMB 0.04 to achieve the price combination. At the same time, the price of valve stations for direct supply users (except for chemical fertilizer companies) shall be released and negotiated between the supplier and the buyer.

The person in charge of the National Development and Reform Commission pointed out that at present, there is a difference of 0.48 yuan per cubic meter between the stock and incremental gas stations. Since the second half of 2014, oil prices in the international market have continued to drop drastically, and the prices of alternative fuels such as fuel oil and liquefied petroleum gas have also dropped. The gap between inventory gas and incremental gas has narrowed significantly. This has created a rare opportunity for realizing price merging.

The person in charge also said that piloting the price of direct-supplied portal stations is a good attempt to promote the market-oriented reform of natural gas prices. There are four main considerations: First, natural gas is highly substitutable, and other energy products can compete with it. Second, offshore natural gas, shale gas, coalbed methane, coal gas, and LNG production capacity have gradually increased in recent years. The gas source has formed a competitive pattern. Third, it is expected that the supply and demand of international and domestic natural gas markets will be relatively loose for a period of time. Fourth, direct supply users will use more gas and have stronger ability to negotiate prices.

The notice was made clear that the reform of gas prices for fertilizers was implemented step-by-step, giving enterprises a certain transition period. This time, the price of fertilizer gas will increase by 0.2 yuan per cubic meter, and at the same time increase the level of gas security for fertilizer production. The fertilizer company that assumes the responsibility for winter peaking will implement a gas price cut policy.

For a long time, the country has adopted preferential prices for the use of chemical fertilizers. When natural gas prices were adjusted in the past two years, considering that the fertilizer market was continuing to be sluggish and the production and operation of enterprises were difficult, preferential treatment was continued. In 2013, the price of fertilizer gas was adjusted to only 0.25 yuan per cubic meter, which was 0.15 yuan less than that of other non-residents, and no adjustment was made for 0.4 yuan in 2014. Lower prices for the use of chemical fertilizers will help ease the pressure on rising costs of fertilizer companies, but it is objectively not conducive to promoting the transformation and upgrading of fertilizer companies and solving the problem of overcapacity in the fertilizer industry.

The person in charge said that from the perspective of reform, gas prices for chemical fertilizers will eventually be released from the market. However, taking into account the actual difficulties of chemical fertilizer companies, it is decided to gradually advance the market-oriented reform of chemical fertilizer gas prices. This time will not be followed by other direct supply. The user price is released, and the fertilizer company will be left in a certain transitional period. This year, the price of chemical fertilizer gas will increase by 0.2 yuan per cubic meter. At the same time, gas supply companies are required to increase the gas security level of chemical fertilizers, and according to the peak load reduction responsibilities assumed by chemical fertilizer companies, they can implement interruptible gas prices, give preferential treatment, and strive to reduce chemical fertilizer companies. burden.

As one of the fastest growing natural gas consumers in the world, China has accelerated the pace of natural gas price reforms in recent years. The basic idea is to establish a trend that reflects market supply and demand and resource scarcity, and is linked to alternative energy prices according to market orientation. The adjustment mechanism will lay the foundation for the ultimate marketization of natural gas prices.

In accordance with the established objectives, China introduced a natural gas price adjustment plan in June 2013, in which non-residents used natural gas price adjustments to differentiate between inventory gas and incremental gas. The incremental valve station price (including ex-factory price and pipeline transportation fee) is adjusted in one step to a level that maintains a reasonable price parity relationship with alternative energy prices, and the stock gas price adjustment is divided into three steps. Stock gas is the actual amount of natural gas used in 2012, which is 112 billion cubic meters. Incremental gas refers to newly added natural gas.

——From July 10, 2013 onwards, to adjust the price of non-residential natural gas stations, the highest price increase rate for stock valve stations is not more than 0.4 yuan per cubic meter. The incremental valve station price is based on alternative energy sources (fuel oil, liquefied petroleum 85% of the price is determined. After the adjustment, the average national gate price increased from 1.69 yuan per cubic meter to 1.95 yuan per cubic meter. Although the scale of the price adjustment is not large, nor does it involve the use of natural gas by residents, it represents a substantial step in the reform of natural gas prices in China.

——From September 1, 2014, the price of natural gas portal stations for non-residential use will increase by RMB 0.4 per cubic meter. At the same time, the prices of imported liquefied natural gas and unconventional natural gas will be fully liberalized, and the market-oriented reform of natural gas prices will “next city".

——From April 1, 2015, non-residents used the stock gas and incremental valve station prices to achieve the goal of rationalizing the price of non-resident gas, and at the same time piloted the release of direct-supplied users' gas prices for full deployment. Open up non-resident gas prices to gain experience.

It is worth noting that, while opening up the price of direct-supplied valve stations for users, relevant departments have actively promoted the construction of the natural gas trading market. At the end of 2014, Shanghai has approved the establishment of a Shanghai oil and gas trading center to carry out natural gas spot trading. After the direct supply users use the valve stations to release their prices, the country will guide this part of the gas volume into the trading center for trading, and gradually form the Chinese natural gas market price.

In regards to the use of natural gas, the Development and Reform Commission has made it clear that this year we must establish a system of ladder gas prices for residents. With the premise of ensuring the living security of low-income groups, we will gradually rationalize the price of gas for residents.

According to the “Guiding Opinions on Establishing and Improving the Gas Price Ladder System for Residents' Life” issued by the National Development and Reform Commission in March 2014, residents' gas use will be divided into three levels, of which the gas consumption of the first grade will be based on 80% of households within the covered area. The monthly average air consumption is determined. At the same time, the first gas price is determined in accordance with the principle of basic compensation for gas supply costs, and remains relatively stable for a certain period of time.