Fiscal, tax subsidies for construction to boost sector's development

Fiscal and tax subsidies for the construction of underground gas storage facilities and improvements to the pricing mechanism for natural gas will help China achieve a more open gas market system, according to industry insiders.

Against increasing demand for natural gas, especially during the peak consumption period in winter, the government should step up construction of underground gas storage facilities with competent peak load regulation capacity to ensure a stable supply of natural gas, said Zhang Mingsen, former deputy chief engineer at the Beijing Research Institute of Chemical Industry under the State-owned oil giant China Petroleum and Chemical Corp.

The government needs to come up with fiscal and tax subsidies for the constructors at the initial phase, he said.