Date
17 October 2017

China may split pipeline bill from gas prices, paper says

The National Energy Administration is studying whether to sever pipeline transport costs from gas prices, the Shanghai Securities News reported Thursday, citing an industry source. A separate company could be set up to invest in, construct and operate gas pipelines, leaving room for upstream producers to negotiate market-based gas prices with end consumers, the paper said. Top gas producers like China National Petroleum Corp. control pipelines and usually add fuel-piping costs to the final gas supply bill, prompting strong opposition from gas consumers such as gas-fired power plants, which claim the system lacks transparency, according to the report.

– Contact HKEJ at [email protected]

KZ/AC/SK

 

    EJI Weekly Newsletter

    Please click here to unsubscribe