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Policy & Regulation

Policy clarity lifts cloud over China’s city gas distributors

The outlook for China’s city gas distribution companies has improved after the central government issued guidance for the regulation of a key revenue source The outlook for China’s city gas distribution companies has improved after the central government issued guidance for the regulation of a key revenue source.
By Colin Shek 12 July 2019 Asia Pacific / Policy & Regulation 0 34389
A city gas storage facility in China. (ENN)

Fees charged by China’s city gas distributors for connecting customers to local pipeline grids are expected to decline as a result of new policy guidance announced by the central government last week. The long-awaited guidelines finally remove the uncertainty over the fate of connection fees, which had troubled the city gas distribution sector for the past year.

Since last summer, city gas players, such as China Gas Holdings and ENN Energy Holdings, had feared there would be a potentially large cut – or...