Skip to content
Subscriber Only

China’s Draft Pipeline Guidelines Seen Boosting Gas Demand

  • Companies should give independent pipeline accounting: NDRC
  • Proposal ‘long-term positive’ for gas industry: Morgan Stanley

China’s latest attempts at reforming the country’s extensive pipeline network are aimed at lowering prices for end users and boosting gas demand, analysts said Wednesday after the country released draft guidelines.

The National Development and Reform Commission proposed setting gas transmission fees for companies rather than for individual pipelines, the country’s top economic planner said in the policy draft released Wednesday. Operators should publicly disclose cost data to allow effective supervision and should be guaranteed an 8 percent return if they utilize at least 75 percent of their capacity, it said. Owners should also create conditions for equal access to pipelines for all customers, according to the draft.