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BEIJING / Reuters
Top officials from China’s two largest oil and gas producers have urged the government to offer tax breaks for the building of gas storage facilities and importing liquefied natural gas (LNG) to help avoid another gas crunch in the winter ahead.
Sinopec Vice President Ma Yongsheng said the central government should subsidise the construction of underground gas storage, LNG tanks and other facilities. China National Petroleum Corp (CNPC) President Wang Yilin urged the government to refund value added tax on LNG imports to lower gas costs for consumers.
Members of parliament and the Chinese People’s Political Consultative Conference, the Communist Party’s largely ceremonial advisory body, are encouraged to submit suggestions for future legislation during the current Parliament session.
Their chances of becoming legislation are minimal, but they can form part of future laws. The proposals from Sinopec and CNPC come as the nation looks for ways to increase storage capacity for natural gas to avoid a repeat of this past winter’s heating crisis. Millions of households in northern China switched from using coal to natural gas for heating ahead of this past winter, leading to sky-rocketing gas consumption as well shortages across many regions.