Beijing struggles to promote direct gas pricing

Beijing is keen to see more buyers and sellers negotiate gas costs as part of pricing reforms, but vested interests are thwarting the plans Beijing is keen to see more buyers and sellers negotiate gas costs as part of pricing reforms, but vested interests are thwarting the plans.
By Colin Shek 15 May 2017 0 25896
Laying the second West-East Pipeline. Efforts to increase third-party access have made little progress. (CNPC)

Two years after China’s government first gave the nod for large-scale users to negotiate gas supply directly with midstream suppliers, the policy has had little impact on the country’s gas market, with various players blaming each other for the deadlock.

Beijing first outlined the policy in February 2015 during a round of reforms to gas pricing, and reiterated it in November 2015, when gas tariffs were last cut. Policymakers had intended that the market-oriented model would reduce end-user costs and accelerate gas pricing...

Log in or register for a free trial to continue reading this article

Already a subscriber?

If you already have a subscription, sign in to continue reading this article.

Log me in

Not a subscriber?

Sign up for 7-day trial access to this and more premium content. It's free.

Sign up now