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Policy & Regulation

Doubt cast on China’s pipeline access plans

China’s central government released new regulations this week to encourage fair and open access to oil and gas pipelines, but experts say a lack of clarity over some terms could thwart its plans China’s central government released new regulations this week to encourage fair and open access to oil and gas pipelines, but experts say a lack of clarity over some terms could thwart its plans.
By Li Xin 27 February 2014 Asia Pacific / Policy & Regulation 0 7155
Inside the second West-East Pipeline. It can transport 30 bcm/y of gas. (CNPC)

Plans released by China’s energy watchdog this week to open up the state-monopolised oil and gas pipeline market are unlikely to have a meaningful impact because of a lack of clarity over conditions for fair use and service fees, experts have told Interfax.

Reformers are lobbying for China’s oil and gas distribution networks – controlled by China National Petroleum Corp. (CNPC) and to a lesser extent by Sinopec – to be liberalised, so output from independent producers can use the companies’ pipelines.

Forcing the state giants to allow...