Premier urges wider access in oil sector

Li stresses importance of diversified supplies and better energy security

Premier Li Keqiang called on Friday for further widening of market access in the energy sector, especially for oil and gas exploration and exploitation, and the development of pipeline networks, to encourage more participation from market players.

Li, while chairing a meeting of the National Energy Commission in Beijing, also stressed the importance of diversifying the country's energy supply and improving its energy security.

Market-oriented reform in the energy sector must be deepened so that various players can take part in the development of liquefied natural gas terminals, natural gas storage facilities and power distribution and sales services, he said.

Li also highlighted the importance of reducing the time required for businesses to obtain electricity to improve the business environment, saying that a mechanism in which energy prices are determined by the market must be established.

He urged accelerated efforts to make breakthroughs in core technologies and key equipment in energy exploration and exploitation.

The commercialization of cutting-edge energy storage technologies and hydrogen energy must be better explored, and the development of new industries and business models powered by the internet must be encouraged, he said.

China remains a developing country, and ensuring its energy supply is a long-term strategic task, he noted.

Coal remains China's primary energy resource, and it is important to come up with sound plans for its exploitation and accelerate the development of coal transportation and power transmission channels, he said.

He underlined the need to promote safe and green exploitation of the fossil fuel, develop clean coal power and improve the use of coalbed gas.

It is important to step up the exploration and development of domestic oil and gas to enable greater production volume and improve China's level of self-sufficiency, he said.

He urged efforts to improve the country's oil and gas reserves and its capacity to cope with emergencies, with more steps to develop hydropower, wind and solar energy and to enable the power grid to better absorb power generated by clean energy.

The premier required greater opening-up in the energy sector to enable win-win outcomes and more diversified international oil and gas cooperation.

China, as a major country in energy consumption, has huge potential in energy conservation, he noted.

Sectors such as the heavy chemical, transportation and construction industries, must be transformed for energy conservation purposes, and the energy efficiency of general-purpose equipment must be improved, he said.

As the winter nears for northern parts of China, Li said concrete measures must be adopted to meet the heating demand from the public.

The production, storage and sales of natural gas must be better coordinated, and authorities must resort to multiple channels to ensure its supply, he said.