The LNG industry is developing rapidly, but many companies still have doubts about the Chinese LNG market. Problems in this market include limited communication between market parties, poor channels, and lack of relevant policies and regulations. These problems have gradually become factors that hinder the further development of China's LNG industry. In the face of the ever-increasing energy demand and unprecedented environmental pressures in China, how can we coordinate all parties to make the LNG industry chain more healthy?

On June 29, 2012, when the China International LNG Conference closed, the organizers admitted that the number of participants has soared in two years. The Beijing International Convention Center, which can accommodate 500 people, apparently has not filled the industry's enthusiasm for China's LNG industry. The organizers have begun to look for larger venues for the next assembly. However, in this expanding group, it is still difficult for government representatives to appear.

The rapid development of the industry and the absence of government representatives reflect the embarrassment of the development of China's liquefied natural gas. On the one hand, the "China speed" of LNG industry development is remarkable. When the world LNG consumption in 2011 increased by 9.4% year-on-year, China's LNG growth rate reached 28%. On the one hand, China's LNG industry still lacks a sound policy environment.

Filling the Blank Master Plan China's fast-growing LNG industry urgently needs policy support and guides market development. Experts suggest that the state should encourage the construction of small-scale LNG satellite stations and LNG peak-shaving stations to cope with emergencies and conduct overall planning to avoid duplication of construction and waste of resources.

For the just-started Chinese LNG industry, good policies can play a role in market development. However, Yao Mingde, honorary president of the China Road Transport Association, pointed out that at present, the reason why China's LNG is difficult to promote rapidly is the lack of national-level master plans and support policies. In terms of overall planning, imported LNG is an important supplement to China’s gas sources and it is necessary to take multiple measures to ensure the smoothness and safety of the channels. Liu Feijun, deputy director of the China Petroleum Planning Institute, believes that the state should encourage the construction of small-scale LNG satellite stations and LNG peak-shaving stations to deal with emergencies and improve the safety and risk-resistance of urban air supply. Focusing on the issue of LNG price, which is currently the focus of attention in the industry, experts pointed out at the meeting that the government should use the LNG price mechanism as soon as possible. In addition, the establishment of LNG reserve centers should be put on the agenda as soon as possible after China has already put into operation five LNG terminals.

From the perspective of policy support, in order to further increase the utilization of clean energy, the parties called for a favorable policy to be introduced as soon as possible to fill gaps in order to strengthen the LNG market.

Based on the current enthusiasm of China's private sector for the LNG industry, relevant policies are needed to guide the development of the market. Taking LNG filling station as an example, Yao Mingde pointed out that the construction of filling stations will continue to heat up in the future. It is estimated that at the end of the “Twelfth Five-Year Plan”, the number of Chinese LNG filling stations can reach 5,000 to 6,000.

Hua Min, a professor at South China University of Technology, pointed out that large companies are building LNG refueling stations in various regions, and they want to take the lead. If we do not formulate measures to conduct overall planning, it will lead to repeated construction and waste of resources.

Timely “relaxing” the release of vitality The development of the LNG industry needs to “relax” existing policies. For example, LNG transportation problems. At present, some information shows that policy makers have realized the existence of problems and tried to pave the way for LNG industry development in some areas. LNG industry development not only needs to fill policy gaps, but also needs to “relax” existing policies.

At present, LNG cannot be transported by rail in China's railroad banned goods. This not only greatly reduces LNG's supplemental function to the area in which the pipeline network does not radiate, but also increases the transportation cost of LNG.

Hua Yu pointed out that LNG is flammable and explosive, but foreign research and a lot of practical experience show that LNG is no more dangerous than gasoline, diesel, or liquefied petroleum gas under the conditions of targeted safety measures. In Japan, the history of LNG transportation by rail has been more than 10 years.

In addition, the issue of conversion of natural gas vehicles is imminent. Refitting in-use vehicles is beneficial to the promotion of natural gas vehicles. During the 10 years of China’s clean car campaign, pilot cities have allowed the conversion of buses and taxis into natural gas vehicles. Most countries in the world allow the conversion of natural gas for automobiles. However, the current Chinese regulations do not allow this. The modification market of natural gas vehicles needs to be regulated, and the market access standards for operational natural gas vehicles need to be improved.

In the construction of LNG filling stations, complex land approval procedures have caused many companies to complain. Although the construction of filling stations for domestic companies is ambitious, the complicated administrative approval process makes the development of the downstream market full of variables. In this regard, the participants gave various suggestions. Huayu believes that the LNG filling station attached to the existing gas station is the most economical and convenient option. But no matter which path you want, you have to support it.

At present, some information shows that policy makers have realized the existence of problems and tried to pave the way for LNG industry development in some areas. For example, the government has previously encouraged the use of LNG in taxis and buses, and has not advocated the use of LNG by heavy trucks or intercity buses. However, the current development trend proves that the transportation sector, especially heavy trucks and intercity buses, are becoming LNG use. A large army. Industry sources pointed out that the country has taken this factor into account when it revise its gas utilization policy.

Building Bridges to Improve Efficiency The development of China's LNG industry is involving multiple sectors. This advantage is not available in other countries. However, in reality, due to lack of policies and related regulations, some links have affected the development of LNG industry. How to build a bridge between the government and the people? How do government agencies form a synergy?

Whether it is to fill in policy gaps or “relax” policies, we cannot avoid the key issue of efficiency.

At present, China's LNG industry development involves more than 10 ministries and commissions, including the Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Public Security, and the Ministry of Railways. Each plays a decisive role in the development of the LNG industry chain.

In fact, the development of China's LNG industry is involving multiple sectors. This advantage is not available in other countries. The key is whether multiple forces can form a synergy. In reality, the situation is not optimistic. Experts at the meeting pointed out that various departments have different levels of understanding of LNG industry development. Some departments have actively promoted it. However, due to lack of policies and relevant regulations, some sectors lack the initiative to promote industrial development. Taking the LNG automotive industrial chain as an example, Hua Yu pointed out that China's LNG vehicle industry chain involves the manufacture of engines, fuel tanks and vehicles, as well as the service supply chain for gas station planning and distribution, LNG production and transportation, and many other aspects. If the various government departments lack integrated planning, coordination and planning, the development of the LNG automobile industry will inevitably be hindered.

In the process of LNG industry development, people-to-people exchanges have been relatively full, private and government exchanges have been lacking, and exchanges between government departments have been limited. All these have limited the development of the LNG industry. How can we build a bridge between the government and the people? How do government agencies form a synergy?

Chi Guojing, secretary-general of the China City Gas Association, pointed out that the associations should fully play a role in communication, timely aggregate various problems in the development of the industry chain, and timely reflect to the government departments in order to provide a favorable policy environment for the industry.

Of course, the Association is more to build bridges between the people and the government. In reality, it is more necessary for the various government departments in the industry chain to cooperate with each other, and there is a strong lead department. No matter what kind of method, people are looking forward to let multi-sector participation become industrial development advantages rather than obstacles, change the current state of the policy lag, and contribute more blue sky to China.



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