Supply & Demand

End of Chongqing fee fuels fears for China city gas sector

Chongqing’s recent proposal to scrap a nearly 20-year-old fee intended to support local pipeline construction has triggered alarm in the burgeoning city gas sector Chongqing’s recent proposal to scrap a nearly 20-year-old fee intended to support local pipeline construction has triggered alarm in the burgeoning city gas sector.
By Colin Shek 22 November 2018 0 33403
City gas storage tanks belonging to ENN. (ENN)

China’s City gas distributors likely have nothing to fear from a recent proposal to end a fee they have collected for years in one of the country’s regional markets, despite recent market turmoil.

The distributors play an important role in supplying end-users in the world’s fastest-growing major gas market. But shares in Hong Kong-listed city gas companies including ENN Energy Holdings and China Resources Gas (CR Gas) were roiled last month after the municipality of Chongqing in southwest China said it was considering removing a RMB...