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By Wu Xu and Guo Jiaofeng, "Development prospect and policies of clean gas energy in China" research team, Research Institute of Resources and Environment Policies, Development Research Center of the State Council (DRC)

Research Report No 80, 2014 (Total No 4579)

Summary:

To ensure China's energy security and promote energy production and consumption reforms, the country vitally needs to develop the natural gas industry. But, the Chinese government has had many problems in managing its natural gas while the Netherlands' natural gas industry developed early and has had a long period of growth and is one of the world’s most mature markets and has a lot that China can learn from.

This report summarizes the Dutch experience and the implications for China's natural gas industry, based on field studies in the Netherlands and its history, current situation, and government controls in the following ways:

First, the market-oriented natural gas reforms need better laws and regulations, with separate government administration and supervision; second, State-owned enterprises can play an important role in the industry, stressing management and efficiency; third, pipelines need to be built in advance, and they should be independent, with open access; and last, the country needs to increase access to exploit small and difficult oil fields.