Research on Pricing Formulation Method for Long Distance Natural Gas Pipeline Network Transporting

Abstract

With the completion of the second line project of West-East Gas Transmission in 2011, the third line of West-East Gas Transmission will be started soon and the fourth line and the fifth line will be started in recent five years. China will form one of the largest natural gas pipeline network in the world. The gas supply mode will be changed from single gas source and single-pipeline supply to multi-source and multi-pipeline supply through regulation and coordination, which will impact on existing pricing mechanism and operation mode of Chinese natural gas industry violently. Depending on the development trend of natural gas pipeline network, the regionalization management mode of natural gas pipeline will be implemented gradually. Chinese natural gas industry also needs to develop a new-type market-oriented operation mode with clear interfaces between production, transportation, distribution and customers so as to facilitate the optimal allocation of resources. By the customized scientific research of CNPC (China National Petroleum Corporation), combining with existing pricing mechanism of natural gas pipeline and economic characteristics of long-distance natural gas pipeline transportation in China, the paper studied the pricing mechanism problem of combined transportation of multi-source and mutli-pipeline gas supply in the regionalization management mechanism, presented the idea of pricing formulation method of two kinds of pipeline network transportation based on standard rates of pipeline transportation and service cost rules, formed pricing formulation system of natural gas pipeline transportation, introduced the design idea, structural construction, distribution method and key points of natural gas pipeline transportation in details, and demonstrated the methods by example calculation. The methods presented in the paper can meet the pricing requirements of natural gas pipeline network transportation, remedy the defect in existing price accounting mechanism, solve the problem that the income and expenses among different interest bodies are not balanced, and facilitate the rapid development of natural gas pipeline business.