Objective Driven by the strategic goals of “carbon peaking and carbon neutrality” natural gas increasingly occupies a prominent position in China’s green transformation efforts to optimize its energy mix. Conducting in-depth research on transportation pricing mechanisms for natural gas pipelines is of significant theoretical value and practical importance for advancing market-oriented reforms in the pricing system and achieving high-quality development within the industry.

Methods This paper systematically reviews the historical evolution of transportation pricing mechanisms for natural gas pipelines and the current status of research in this field. It provides an in-depth analysis of the existing transportation pricing mechanisms for natural gas pipelines in China, examining three types of pipeline operators: inter-provincial natural gas transportation pipelines, intra-provincial short-distance natural gas transportation pipelines, and urban gas transmission and distribution pipelines. Special emphasis is placed on identifying existing problems and proposing a targeted optimization pathway.

Results The current mode of dividing pricing zones for inter-provincial natural gas pipelines based on physical terminals fails to adequately account for differences in various aspects, such as pipeline network construction costs, load rates, and competition dynamics arising from alternative energy sources across different administrative regions. Additionally, the economic development levels and energy consumption structures significantly vary across regions within the central and eastern pricing zone, resulting in notable disparities in the affordability of pipeline transportation rates. As of now, China has established pricing frameworks for pipeline transportation rates for inter-provincial natural gas pipelines and urban gas distribution and transmission pipelines. However, there is a lack of unified pricing rules for intra-provincial short-distance natural gas transportation pipelines. Furthermore, the progress of integrating provincial networks into the national pipeline network is inconsistent, which hampers the cross-regional flow and market integration of natural gas. The existing pricing structure under the “one-part” system leads to “cross-subsidization” among gas users, undermining both the fairness and cost-transmission function of the rate system. To address these deficiencies, this paper proposes a three-stage optimization pathway for reforming the transportation pricing mechanisms for natural gas pipelines: (1) Unifying pricing rules across intra-provincial networks to promote interconnection; (2) Optimizing the method for dividing pricing zones to align them with administrative regions and subdividing the central and eastern pricing zone; and (3) Gradually transitioning the pricing structure to a two-part system for inter-provincial pipeline transportation.

Conclusion The research outcomes provide a theoretical foundation and policy reference for improving China’s pricing mechanisms for natural gas pipelines and promoting the integrated development of energy markets.