Research On Natural Gas Pipeline Pricing Methods Based On The Compound Cost Behavior

The proportion of natural gas in primary energy consumption will increase to more than10% in the future,according to the State Council's “Energy Development Strategy Action Plan(2014-2020)”.The National Development and Reform Commission of the People's Republic of China issued " New policy of pipeline transportation"(No.2142)On Oct 9,2016,which is a major reform of the natural gas pipeline transportation price mechanism,proposing the new price policy.It can be seen that it is imperative to deepen the research on the pricing method of natural gas pipeline.Firstly,this paper analyzes the limitations of the current natural gas pipeline pricing method on the basis of the literature review,demonstrates the compound of the natural gas pipeline,and puts forward the concept of Compound Gas Transmission.Secondly,The calculation method of the Compound Gas Transmission,the division of the pipeline transportation cost and the regulations of the cost of the pipeline transportation in the " New policy of pipeline transportation" of the Commission are introduced.Then the paper analyzes empirically the compound cost driver of the natural gas pipeline and discusses target profit problems of pipeline transportation enterprises.Thirdly,the thesis expounds the shortcomings of traditional of the pipeline pricing method based on the "price comparison algorithm".It derives the natural gas pipeline pricing formula based on the Cost Additive Method,and further established the natural gas pipeline pricing model based on the composite cost behavior,and the parameters of the model are analyzed.Finally,the model is applied in the Central management office of SNPC.and conducts the profit sensitivity analysis.The results show that the current pipeline price in China is overvalued at least by 50%.The market price of natural gas pipeline transportation is calculated by its relationship with the market price of the natural gas,getting a range.From strong to weak,the sensitivity of the factors: the unit price,the compound gas transmission rate,the fixed and variable cost of the pipeline.This model has a great reference and application value,facing the " New policy of pipeline transportation".The lower pipe prices in the future will push the transportation enterprises to be more vigilant and prepare in advance for maintain or raise profits under the pressure of the possible lower natural gas pipeline price.