China price cut aims to maintain demand momentum

The benchmark gas price cut will shave nearly $1 billion off fuel costs for the non-residential sector and help ensure China’s gas demand stays healthy entering winter
By Colin Shek and Tang Tian 4 September 2017
ENN Energy Holdings citygas gas storage Distributors such as ENN are expected to benefit from the price cut. (ENN)

China’s first wholesale gas price cut for commercial and industrial users in nearly two years reflects Beijing’s intention to ensure gas demand growth maintains momentum in the second half of 2017, when coal combustion traditionally spikes to create intense smog.

The National Development and Reform Commission (NDRC) cut citygate prices by a flat rate of RMB 0.1 per cubic metre ($0.42/MMBtu) on Friday, a reduction of 5.5% from the previous national average that will save non-residential end-users at least RMB 7 billion ($920 million)...

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