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China's gas pipeline reforms gain momentum

China's gas pipeline reforms gain momentum

Report summary

On 12 October 2016, the National Development and Reform Commission (NDRC) published the 'Measures for the Regulation on Gas Pipeline Tariffs' and the 'Measures for the Supervision and Examination of Gas Pipelines’ Pricing Costs'. Both will come into effect on 1 January 2017. These policies establish a clear tariff-setting mechanism at the national level for interprovincial gas pipeline tariffs. However, the success of reform depends on implementation. Whether an 8% return will be sufficient to incentivise required levels of investment is uncertain.

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