To implement the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China and the decisions and deployments of the Party Central Committee and the State Council on deepening reform of the oil and gas market system and improving the price governance mechanism, as well as to strengthen price regulation in natural monopoly segments and enhance the efficiency of natural gas pipeline transportation, the National Development and Reform Commission and the National Energy Administration recently issued the "Guiding Opinions on Improving the Price Mechanism for Intra-Provincial Natural Gas Pipeline Transportation and Promoting High-Quality Development of the Industry" (hereinafter referred to as the "Guiding Opinions").

　　The “Guiding Opinions” require localities to refine the pricing mechanisms for intra-provincial natural gas pipeline transportation. First, it clarifies that the prices for intra-provincial natural gas pipeline transportation shall be formulated by the provincial-level development and reform authorities, and in principle, pricing authority will no longer be delegated downward. Second, it specifies that a unified pricing model should be implemented, transitioning from the current “one line, one price” and “one enterprise, one price” approaches to regional pricing or a province-wide uniform price, thereby effectively aligning with the pricing mechanisms for inter-provincial natural gas pipelines and facilitating the establishment of a “nationwide integrated network.” Third, it stipulates that intra-provincial natural gas pipeline transportation prices shall be determined using the “allowed costs plus reasonable returns” approach, and sets forth specific requirements for relevant pricing parameters.

　　The “Guiding Opinions” call upon localities to strengthen the construction and operational management of natural gas pipelines within their respective provinces. First, provincial energy authorities are required to take unified responsibility for planning natural gas pipelines within their provinces, optimize pipeline layouts, reduce transportation levels, and avoid redundant construction. Second, it is necessary to tighten the review and approval process for investment projects, strictly controlling the addition of unnecessary intermediate links and projects that hinder the efficient utilization of resources, thereby promoting centralized integration and enhancing the operational efficiency of pipeline networks. In addition, the “Guiding Opinions” also set forth relevant requirements regarding reducing the number of gas supply stages to lower supply costs, standardizing market order, and fostering fair and open access.

　　Next, the National Development and Reform Commission and the National Energy Administration will guide localities in systematically assessing the construction, operation, and price management of natural gas pipelines within their provinces, accelerate the refinement of relevant policies, and ensure the steady and orderly implementation of these policies.