Premier Li Keqiang called for deepening the reform of the oil and gas industry and ensuring the safe and stable supply of oil and gas.

He made the remarks in an instruction regarding the establishment of the China Oil & Gas Piping Network Corporation on Dec 9, while extending congratulations to the new State-owned enterprise (SOE).

He said the establishment of the new company is a key step to further reform the oil and gas sector and ensure the safe and stable supply of oil and gas.

The company should promote reform and innovation and build a scientific operation and management system while creating a fair market for upstream resource supply and downstream sales, in an effort to improve the efficiency of oil and gas resource allocation and better serve national strategies and meet people’s demands, according to the instruction.

Vice-Premier Han Zheng attended the launching ceremony.

This is an important measure to deepen the reform of the oil and gas system and the reform of State-owned assets and SOEs, Han said.

The establishment of this SOE will have a significant impact on improving the allocation efficiency of oil and gas resources, promoting the high-quality development of the oil and gas industry, ensuring national energy security and better serving economic and social development, Han said.

He urged the stepping up of efforts to establish an oil and gas market with multiple market players and channels to provide resources, an efficient and unified transportation network and sufficient competition in sales.

He also said related oil and gas enterprises and pipeline companies should coordinate to build a mechanism of oil and gas production, transportation, sales, storage and trade, and guarantee reform and production will be carried out simultaneously, adding local pipeline networks will be encouraged to be integrated into the national one according to market principles.

State Councilor Wang Yong and He Lifeng, head of the National Development and Reform Commission, also attended the ceremony.