Recently, the Qinzhou Port area of the China (Guangxi) Pilot Free Trade Zone (FTZ) promoted a market reform for natural gas, which will provide more benefits for enterprises.

In June 2022, the Qinzhou port area of the Guangxi FTZ released the second batch of pilot market-oriented reforms regarding large natural gas enterprises.

Through these reforms, the highest cost reduction sits at 35 percent. After the implementation of these natural gas reforms, Guangxi Jingui Pulp and Paper is expected to save more than 150 million yuan ($22 million) per year, and Huayi is expected to save 90 million yuan. In addition, CNGR will save 50 million yuan, while Guangzhou Iron and Steel New Material is expected to save at least 10 million yuan every year. 

The CNGR factory. [Photo/WeChat account: gh_df8bc987e060]

The Qinzhou port area of the Guangxi FTZ has established a natural gas pipeline network company, which is led by a company and shared by market entities. It has carried out the planning and construction of natural gas pipelines, reduced the need for pipeline replacements, reduced the space occupancy of regional land resources, and enhanced market competition.

Huayi Qinzhou chemical new material integration base. [Photo/WeChat account: gh_df8bc987e060]

Qinzhou is building natural gas infrastructure, which will include pipelines and stations. It has built the 2.6-kilometer Qinzhou Port-Zhongwei high-pressure natural gas pipeline, and the 13.6-km Petrochemical Industrial Park - Huayi sub-high-pressure natural gas pipeline. Currently, it is building a cross-river high-pressure pipeline from the end station of the Qinzhou petrochemical industrial park, which will serve as a gas storage station.