The central budget invests 'real money' to support the renewal and renovation of gas pipelines. The pipe industry, which used to be 'unpopular', is quietly ushering in a round of sustained demand growth.

Recently, the Ministry of Housing and Urban-Rural Development and the National Development and Reform Commission jointly issued the Notice on Further Clarifying the Requirements for the Aging Renewal and Renovation of Urban Gas Pipelines (hereinafter referred to as the 'Notice' ), which requires the competent departments of all provinces (autonomous regions and municipalities) to organize cities and counties to urgently study and propose the tasks and project lists of urban gas, water supply, heat supply, drainage pipelines and other aging renewal and renovation plans in their regions in 2023.

According to the requirements of the 'Notice' , in principle, the formulation of the provincial plan shall be completed by the end of October 2022, and the renewal and renovation ledger should be established on the basis of grasping the number of aging pipelines and facilities.

In fact, as early as the beginning of this year, the government work report clearly stated that it will actively expand effective investment, including speeding up the renewal and renovation of urban gas pipelines, water supply and drainage pipelines and other pipe networks.

According to the data from the National Development and Reform Commission, by the end of 2020, there were about 1.05 million kilometers of gas pipelines, about 1.27 million kilometers of water supply pipelines, about 1.02 million kilometers of drainage pipelines and about 480,000 kilometers of heating pipelines in cities and counties across the country.

At the beginning of this year, several departments also revealed the data of the gas pipeline renewal and renovation project. The relevant person in charge of the Ministry of Housing and Urban-Rural Development has said that this year they will strive to start construction and renovate about 20,000 kilometers of gas pipelines with potential safety hazards. Su Jie, director of the Safety Coordination Department of the Ministry of Emergency Management, once revealed that during the '14th Five-Year Plan' period, China will transform 100,000 kilometers of old gas pipelines. In this regard, some analysts predict that the scale of investment in gas pipelines alone will reach hundreds of billions of yuan.

According to analysis, in the past 10 years, the compound growth rate of urban gas pipeline length has reached 10.85%. Among them, during the '13th Five-Year Plan' period, an average of 70,000 kilometers of new gas pipelines were added every year. In the future, China's gas pipeline demand will be manifested as the trend of rapid development of the dual-track 'new addition + transformation' , which will greatly increase the future demand for pipes.

Source: https://www.cnfin.com/gs-lb/detail/20221013/3725401_1.html