China’s pipeline reform: what to expect

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17 September 2019

China’s pipeline reform: what to expect

Report summary

Regulating China’s energy sector is becoming more challenging as the market grows bigger and more complex. To promote infrastructure investment and open pipeline access, China wants to create a national pipeline company, wresting control of the country’s pipeline network from the three national oil companies. The reform would encourage higher investment and unlock more oil and gas potential, particularly from unconventional sources. It could pave the way for China’s transition towards a market-based gas price mechanism. In turn, this will further stimulate gas demand, promoting the government’s decarbonisation agenda and reducing pollution. However, we expect the implementation to be gradual as China liberalises the market while mitigating impacts on gas demand and economics.

Table of contents

    • Background
    • Timeframe and likely assets
    • Valuation
    • Ownership
    • Impact on PetroChina
    • Impact on the other national oil companies
    • Impact on China’s broader upstream sector
    • Impact on China’s gas pricing
    • Transition towards energy content-based pricing
    • Implementation risks

Tables and charts

This report includes 7 images and tables including:

  • Midstream reform’s impact on China’s energy industry
  • China pipeline connectivity map
  • National PipeCo's valuation
  • Operating earnings by business unit
  • Return on assets by business unit
  • PetroChina’s natural gas and pipeline capex

What's included

This report contains:

  • Document

    China’s pipeline reform: what to expect

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