Insight
How will recent declines in gas prices and tariffs for power plants impact China's gas demand?
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Report summary
Since July, China’s key coastal provinces have reduced on-grid tariffs for gas power plants by 20-30%, in some cases to the same level as coal-fired power. This ‘coal parity’ initiative has a huge impact on the economics of the current fleet and investment decisions for new units. If these unfriendly policies are maintained, it could lead to a 17% reduction in gas demand by 2025 compared with our base case view.
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