Study Of The Admission System Of Long-distance Transmission And Distribution Pipelines Network Of Natural Gas In China

Natural gas is a type of clean fuel which is the crucial impetus of the Chinese economy. The development of the natural gas industry depends on the establishment and further improvement of the relevant regulatory framework. In the supply chain of natural gas, the long-distance transmission and distribution pipeline network plays the central role by connecting the upstream supply from the exploitation and the downstream distribution for the consumption. In order to effectively regulate the natural gas industry, it is essential to construct the legal system to control the long-distance transmission and distribution pipeline network. The objective of this research is to offer a preliminary discussion about the admission system of the pipeline network and to make several proposals for future legislations in this light.This research is designed as 6 parts. Chapter 1 starts with a discussion about the features of the natural gas industry in a national and international perspective and continues the necessity and justification of the admission system of the long-distance transmission and distribution pipeline network. In the second chapter, the analysis is first made on the physical nature of the long-distance transmission and distribution pipeline network and then on the value choice among the safety, efficiency and fairness in designing the admission system on the basis of the market access theory. Chapter 3 will justify the admission system of the long-distance transmission and distribution pipeline network on the ground of the natural monopoly theory and the compulsory licensing approach. With the essence of natural monopoly and freedom of contract, if such a dominant undertaking abuses its market power, there is a risk of eliminate the competition and harming the consumer interest. Therefore the relevant regulation is needed in order to promote the competition. Based on the reality of the admission system in China, Chapter 4 has point out that the currently available law and policies in this regard are not complete, sometimes conflicting and without a clearly authorized regulatory institution. Chapter 5 introduces the admission system of the long-distance transmission and distribution pipeline network in the United States, the United Kingdom, the Netherlands and the European Union and learns a lesson from those experiences for designing the Chinese counterpart. Chapter 6 makes several proposals for designing the future admission system of the long-distance transmission and distribution pipeline network in China. Firstly, designing the system shall follow the principles including promoting competition, regulatory independency and safeguarding public interest. Secondly, the natural gas law shall be made in order to clearly confirm the admission system of the long-distance transmission and distribution pipeline network in the legislation, to authorize the regulatory institution which will be established to control the long-distance transmission and distribution pipeline network and finally to accomplish the admission system step by step in accordance with the reality of the national and local development.