Officials from China’s two biggest oil and gas producers have urged the Chinese government to introduce new tax breaks for the construction of gas storage facilities and imports of liquefied natural gas (LNG), and warned that a failure to do so would risk further gas shortages next winter, Reuters reports.
Sinopec Vice President Ma Yongsheng called for the introduction of subsidies for constructing underground gas and LNG storage facilities, while China National Petroleum Corp (CNPC) President Wang Yilin said the government should consider measures to refund value-added tax on LNG imports to lower gas prices for consumers.
The two officials made the comments during the ongoing meeting of the Chinese People’s Political Consultative Conference, a largely ceremonial body that provides policy suggestions to China’s top leaders.
China suffered significant gas shortages last winter as measures designed to reduce air pollution levels by curbing the use of coal for heating led to a spike in demand for gas.
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