PetroChina is appealing to the Chinese government for a 13% value added tax (VAT) waiver on imports for Turkmen gas.

The waiver will help strengthen Chinese gas imports and address piped gas costs, which are more than double competing local supplies, reports Reuters.

The waiver comes at a time when China plans to annually import 30 billion cubic metres of Turkmen gas by next year, which constitutes 40% of the country’s total domestic production.

Removal of VAT would help China, which is currently experiencing gas deficiencies during the winter season.

According to industry officials, PetroChina is awaiting the Ministry of Finance’s decision regarding the proposal.

China is also boosting liquefied natural gas imports, which are subject to a 13% VAT. Imports of LNG and piped gas are duty-free.