Influence of low load rate of provincial natural gas pipeline network in North China on terminal cost

The natural gas pipeline network in North China is well developed, and the demand of natural gas is increasing day by day. However, "1+X" business mode was formed in the intermediate links of transportation by the provincial short-distance pipeline networks due to different operators, scattered distribution, small size and pressure level and low load rate of transportation under the pricing mode of allowable cost + reasonable profits for pipeline transportation, which results in a challenging bottleneck of transportation cost. By analyzing and comparing the difference of natural gas transportation price between the long-distance pipelines in the national pipeline network and the short-distance pipelines in the provincial network in the North China, it was pointed out that increasing the pipeline load rate above the specified starting value could significantly reduce the pipeline transportation price of single cubic meter of gas, and has a significant effect on reducing the cost of gas consumption for the end users. Hence, the following suggestions were put forward: weakening the bottleneck of transportation cost and stimulating the market vitality by reducing the intermediate links of transportation and incorporating the provincial pipeline network into the national network, optimizing the pipeline transportation and distribution path of natural gas, actively promoting the fair opening of provincial short-distance pipelines to the third parties, continuously strengthening the allocating, transportation and supplying of natural gas, and benefiting the users with the interaction of transportation volume and price, so as to facilitate the high-quality development of natural gas industry.