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Policy & Regulation

Guangdong works to lower gas costs

The southern Chinese province has resorted to cutting pipeline and distribution tariffs to push end-user gas costs down as it looks to lift lagging residential and industrial gas demand The southern Chinese province has resorted to cutting pipeline and distribution tariffs to push end-user gas costs down as it looks to lift lagging residential and industrial gas demand.
By Tang Tian 7 February 2019 Asia Pacific / Policy & Regulation 0 33912
CNOOC's LNG-fired power plant in Huizhou Daya Bay Petrochemical Industrial Park, Guangdong. (CNOOC)

The key issue: China’s main economic powerhouse of Guangdong announced nearly a year ago that it wanted to lower the price it pays PetroChina for pipeline gas to stimulate demand. But the NOC’s refusal has forced the southern province to find other ways to push costs down for end-users.

Interfax analysis: Guangdong’s government expressed a desire in March 2018 to negotiate a price cut for gas supplied by PetroChina’s West-East Pipeline network, calling for a reduction from RMB 2.08 per cubic...