Notice of the General Office of Yunnan Provincial People’s Government on Forwarding the Implementation Opinions of the Provincial Development and Reform Commission on Establishing a Long-term Mechanis
The people’s governments of all prefectures and cities, the Administrative Committee of Central Yunnan Industrial New District, and the provincial committees, offices, departments and bureaus:
Provincial Development and Reform Commission’s "Implementation Opinions on Establishing a Long-term Mechanism for Stable Supply of Natural Gas" has been agreed by the provincial people’s government and is now forwarded to you, please implement it carefully.
General Office of Yunnan Provincial People’s Government
September 25, 2014
(This piece is publicly released)
Suggestions on establishing a long-term mechanism for stable supply of natural gas
Provincial Development and Reform Commission
With the completion and ventilation of China-Myanmar natural gas pipeline, our province began to gradually promote the utilization of natural gas, and the scope and scale of utilization will continue to expand. Stable gas supply has become a major issue related to the economic and people’s livelihood development of our province. In order to ensure the long-term stable supply of natural gas in the whole province, according to the spirit of Notice of General Office of the State Council on Forwarding Several Opinions of Development and Reform Commission on Establishing a Long-term Mechanism to Ensure the Stable Supply of Natural Gas (Guo Ban Fa [2014] No.19), combined with relevant national natural gas policies, Opinions of Yunnan Provincial People’s Government on Accelerating the Development of Natural Gas Utilization (Yun Zhengfa [2013] No.191) and Notice of Yunnan Provincial People’s Government on Printing and Distributing the Outline of Yunnan Natural Gas Utilization and Development Plan.
I. General requirements
Thoroughly implement the spirit of the relevant documents of the state, the provincial party committee and the provincial government, focus on ensuring the people’s livelihood, and strive to achieve a basic balance between the total supply and demand of natural gas in accordance with the ideas and principles of "planning first, connecting supply and demand, orderly distribution, supervision in place, responsibility implementation, and price rationalization" to effectively ensure the long-term stable supply of natural gas in our province.
Second, the main task
(1)Accelerate the construction of natural gas branch pipelines, urban gas pipe networks, gate stations, gas storage and other infrastructure facilities in the province, especially in areas not covered by the main and branch lines of China-Myanmar natural gas pipelines, promote ventilation and gas use in all localities as soon as possible, expand the scale of natural gas utilization, and ensure the realization of the province’s gas consumption targets.
(2)Ensure people’s livelihood and use gas. Focus on meeting people’s daily life gas, public service facilities gas (including airports, railway stations, schools, hospitals, welfare homes, nursing homes, ports, terminal passenger stations, bus passenger stations, etc.), as well as people’s livelihood gas needs such as buses and taxis, especially to ensure the safe and stable supply of residential gas.
(3)Establish an orderly gas use mechanism. Adhere to planning first, living within our means, balancing the whole province, negotiating between supply and demand, and taking people’s livelihood as the primary gas supply security field, make overall planning and arrangement of gas consumption for people’s livelihood and non-people’s livelihood, reasonably determine the gas supply sequence and scheme in each region, strengthen demand side management, and standardize the gas consumption order.
Third, safeguard measures
(A) improve the ability to ensure resources
Taking the natural gas of China-Myanmar pipeline as the main gas source, relying on the communication between China-Myanmar pipeline and China-Guizhou and Guangnan branch line of west-east gas transmission, more pipeline gas sources will be introduced; Make full use of the "Sichuan gas" that has entered Zhaotong; Actively introduce liquefied natural gas (LNG) gas source, and speed up the construction of coal-based gas and coke oven gas-based LNG gas source in the province; Accelerate the pace of surface extraction and utilization of coalbed methane in the province; Accelerate the exploration and development of unconventional gas resources such as natural gas, especially shale gas in the province, and form a diversified gas supply pattern. Do a good job in balancing natural gas and other energy sources and optimize the use of natural gas. Using various clean energy sources, we will promote coal substitution in multiple channels and ways, and promote the "coal to gas" project in an orderly manner according to resources and prices.
(2) Do a good job in balancing the total supply and demand.
According to the principle of long-term supply planning, increasing supply as planned, and signing contracts between supply and demand, we should balance the total supply and demand of natural gas. All localities and relevant departments should strengthen communication and connection with upstream, middle and downstream enterprises of natural gas, organize enterprises to forecast gas demand, urge both parties to sign contracts, strengthen overall coordination, and make annual gas use plans. Strengthen demand side management, optimize gas consumption structure, reasonably arrange gas consumption increment according to gas source situation, moderately develop interruptible gas supply users, and reasonably arrange gas supply sequence to ensure gas supply safety for residents, public facilities and key users. Natural gas sales enterprises should implement the annual pipeline natural gas and LNG supply plan, and fulfill the quarterly (monthly) peak shaving and daily peak shaving gas supply obligations agreed in the natural gas purchase and sale contract. Implement emergency measures such as "suppressing non-people’s livelihood" (suppressing non-people’s livelihood gas and protecting people’s livelihood gas) to ensure that the dispatching of people’s livelihood gas supply is in place. The establishment of natural gas reserves, by 2020, have not less than the year.Working capacity of 10% of the same sales volume. Urban gas enterprises should strictly implement demand-side management measures and emergency dispatching plans, implement the daily and hourly peak-shaving gas supply obligations agreed in the natural gas purchase and sale contracts, and establish natural gas storage facilities to meet the regional daily and hourly peak-shaving and emergency needs, at least to form an emergency storage capacity that is not lower than the local average demand of three days.
(3) Accelerate the construction of gas storage facilities.
All localities should strengthen the construction of gas storage and peak regulation facilities and LNG receiving and storage facilities, and realize interconnection with natural gas feeder lines and urban pipe networks to effectively improve emergency gas storage capacity. Conscientiously implement the Guiding Opinions of the National Development and Reform Commission on Accelerating the Construction of Gas Storage Facilities (No.903 [2014] of the Development and Reform Commission), study and formulate policies and measures to encourage the construction of gas storage facilities, and effectively promote the construction of gas storage facilities. Accelerate the construction progress of gas storage projects under construction. Support all kinds of market players to participate in the investment, construction and operation of gas storage facilities on an equal footing according to law. Increase financing support for gas storage facilities investment enterprises, and eligible enterprises can issue project income bonds to raise funds for gas storage facilities construction. Give priority to the construction land for gas storage facilities. For independently operated gas storage facilities, the gas storage price shall be determined according to the principle of cost compensation and reasonable income. The gas storage facilities, investment and operating costs built by urban gas enterprises should be taken into account in the overall consideration of gas distribution costs, and appropriate benefits should be given. Priority will be given to supporting natural gas sales enterprises and urban gas business enterprises whose peak-to-valley gas consumption difference exceeds 3:1 and people’s livelihood gas consumption accounts for more than 40% to build gas storage facilities. Natural gas sales enterprises and urban gas business enterprises can build gas storage facilities independently or jointly, or entrust other enterprises to store them on their behalf. The increase in gas supply will be linked to the scale of gas storage facilities, and natural gas sales enterprises will give priority to increasing gas supply to areas with gas storage facilities under the same conditions. By 2015, the emergency peak shaving and gas storage facilities of natural gas in key cities such as Kunming, Qujing and Yuxi will reach 100 million cubic meters; By 2020,China-Myanmar natural gas pipeline will be built to support 1.429 billion cubic meters underground gas storage in central Yunnan.
(D) the establishment of forecasting and early warning mechanism
All localities, relevant departments and enterprises should establish and improve natural gas monitoring, forecasting and early warning mechanisms, strengthen situation forecasting and analysis, timely grasp the supply and demand situation of natural gas, pay close attention to the problems of signs and tendencies, and achieve early detection, early coordination and early disposal of natural gas supply risks. Relevant departments should supervise the signing of natural gas purchase and sale contracts and gas supply and use contracts, do a good job in contract filing management, and strengthen supervision and management of natural gas sales enterprises and urban gas business enterprises to implement contracts and protect people’s livelihood. Enterprises involved in natural gas sales and supply should establish a natural gas information reporting system and a daily newspaper system for key cities during peak hours, and timely and accurately report market users, gas consumption structure, supply and demand to relevant competent departments.
(5) Establish and improve emergency plans.
All localities and relevant departments should establish and improve the emergency plan for natural gas supply, organize enterprises to establish and improve the emergency dispatching and emergency regulation mechanism according to law, determine the order of gas protection, pressure, limit and stop according to the emergency plan in case of tight gas supply, do a good job in emergency management and stabilize natural gas supply. For natural gas pipeline accidents above the gate station, in accordance with the Notice of the General Office of the People’s Government of Yunnan Province on Printing and Distributing the Emergency Plan for Oil and Gas Pipeline Accidents in Yunnan Province (No.29 [2014] of Yun Zhengban), effective measures shall be taken in time to properly handle unexpected accidents, reduce the impact of accidents on people’s livelihood and maintain social stability.
(six) do a good job in the reform of natural gas field.
In accordance with the requirements of the national oil and gas system reform, we will promote the exploration and development of natural gas, shale gas and other resources in our province in a timely manner, gradually rationalize the construction and operation system of natural gas pipeline network in the province, and enhance the province’s natural gas allocation and balance capacity. In accordance with the requirements of the national natural gas price reform, we will further rationalize the price comparison relationship between natural gas prices and alternative energy prices, establish and improve the linkage mechanism between upstream and downstream prices of natural gas, improve the pricing and price adjustment mechanism of natural gas, and reasonably determine the pipeline transportation fee and the sales price of natural gas classification terminals. Speed up the rationalization of the price relationship between vehicle natural gas and gasoline and diesel. Before the end of 2015, a ladder price system for residential gas will be established in places where natural gas has been piped. We will study and implement policies such as seasonal price difference for non-resident users and gas prices that can be cut off in the middle, encourage places with large gas peak-valley differences to take the lead in implementation, and guide users to cut off peaks and fill valleys.
Fourth, strengthen organizational leadership
All localities and relevant departments should combine the implementation of Document No.19 [2014] issued by the State Council with the implementation of documents No.191 [2013] and No.192 [2013] of Yun Zhengfa. While accelerating the pace of natural gas popularization and utilization in our province, it is an important task to establish a long-term mechanism for the stable supply of natural gas and ensure the supply of gas for people’s livelihood, strengthen organizational leadership, improve the working mechanism and implement the division of responsibilities. Provincial energy authorities should strengthen comprehensive coordination, organize the formulation and implementation of natural gas utilization and development planning, do a good job in the annual balance of supply and demand of natural gas and the coordination and supervision of daily operation, timely coordinate the contradiction between supply and demand of natural gas, and put forward solutions and measures. Relevant departments directly under the provincial government should work closely together in accordance with the division of functions, pay close attention to refining relevant policies and measures, do a solid job in relevant work, and ensure that the work of establishing a long-term mechanism for stable supply of natural gas has achieved practical results.
Attachment: Division of Key Tasks
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