The congestion cost of pipeline networks under third-party access in China's natural gas market

Wei, Q; Zhou, P; Shi, X

The congestion cost of pipeline networks under third-party access in China's natural gas market

Wei, Q Zhou, P Shi, X

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Publisher:: PERGAMON-ELSEVIER SCIENCE LTD
Publication Type:: Journal Article
Citation:: Energy, 2023, 284
Issue Date:: 2023-12-01

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Field	Value	Language
dc.contributor.author	Wei, Q
dc.contributor.author	Zhou, P
dc.contributor.author	Shi, X https://orcid.org/0000-0001-9653-7395
dc.date.accessioned	2024-03-18T06:14:55Z
dc.date.available	2024-03-18T06:14:55Z
dc.date.issued	2023-12-01
dc.identifier.citation	Energy, 2023, 284
dc.identifier.issn	0360-5442
dc.identifier.issn	1873-6785
dc.identifier.uri	http://hdl.handle.net/10453/176865
dc.description.abstract	The consolidation of natural gas pipelines and the implementation of Third-Party Access (TPA) are two critical conditions of gas market liberalization that are being implemented in China, but their full impacts are insufficiently understood. This study employs a natural gas market equilibrium model to explore the utilization rate and congestion cost of China's long-distance pipelines, considering the economic properties of the pipelines. Except for the producer and the ending consumer, we envision the trader as a new agent based on the implementation of the TPA and improve the marketing behaviors of independent pipeline and storage operator agents covered in previous studies by adding independent transportation service and seasonal arbitrage. The results show that while the total utilization rate of long-distance pipelines is 87%, many pipeline segments are congested, which suggests that China's long-distance pipeline network has the potential for optimization. By introducing the congestion fee, this study identifies the pipelines that need structural optimization and capacity expansion. The results of this paper suggest that optimizing existing pipeline networks, deepening market liberalization, and developing a functional storage sector should be prioritized in China's gas market development.
dc.language	English
dc.publisher	PERGAMON-ELSEVIER SCIENCE LTD
dc.relation.ispartof	Energy
dc.relation.isbasedon	10.1016/j.energy.2023.128521
dc.rights	info:eu-repo/semantics/embargoedAccess
dc.subject	0913 Mechanical Engineering, 0914 Resources Engineering and Extractive Metallurgy, 0915 Interdisciplinary Engineering
dc.subject.classification	Energy
dc.subject.classification	4008 Electrical engineering
dc.subject.classification	4012 Fluid mechanics and thermal engineering
dc.subject.classification	4017 Mechanical engineering
dc.title	The congestion cost of pipeline networks under third-party access in China's natural gas market
dc.type	Journal Article
utslib.citation.volume	284
utslib.for	0913 Mechanical Engineering
utslib.for	0914 Resources Engineering and Extractive Metallurgy
utslib.for	0915 Interdisciplinary Engineering
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/DVC (International)
pubs.organisational-group	University of Technology Sydney/DVC (International)/Australia-China Relations Institute
utslib.copyright.status	embargoed	*
utslib.copyright.embargo	2025-12-01T00:00:00+1000Z
dc.date.updated	2024-03-18T06:14:54Z
pubs.publication-status	Published
pubs.volume	284

Abstract:

The consolidation of natural gas pipelines and the implementation of Third-Party Access (TPA) are two critical conditions of gas market liberalization that are being implemented in China, but their full impacts are insufficiently understood. This study employs a natural gas market equilibrium model to explore the utilization rate and congestion cost of China's long-distance pipelines, considering the economic properties of the pipelines. Except for the producer and the ending consumer, we envision the trader as a new agent based on the implementation of the TPA and improve the marketing behaviors of independent pipeline and storage operator agents covered in previous studies by adding independent transportation service and seasonal arbitrage. The results show that while the total utilization rate of long-distance pipelines is 87%, many pipeline segments are congested, which suggests that China's long-distance pipeline network has the potential for optimization. By introducing the congestion fee, this study identifies the pipelines that need structural optimization and capacity expansion. The results of this paper suggest that optimizing existing pipeline networks, deepening market liberalization, and developing a functional storage sector should be prioritized in China's gas market development.

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http://hdl.handle.net/10453/176865