China's NDRC Mulls Improving Gas Pipeline Transmission Pricing Mechanism

China’s National Development and Reform Commission is going to improve the gas pipeline transmission pricing mechanism, and will recalculate gas pipeline transmission cost in 2016, Xinhua Finance Agency said Friday citing a report by Economic Information Daily.

The gas transmission prices for main pipelines and provincial pipeline network would be respectively set by Chinese government and provincial governments, based on which the gas transmission cost would be recalculated, the news agency stated, adding that the final natural gas price paid by users would consist of trading price and transmission price.

The recalculation of gas transmission cost has given a hint that China would separate pipeline operation from traditional oil and gas operators, Xinhua Finance reported.

Beijing is looking at implementing aggressive reforms its vast energy sector, part of a broader restructuring drive to boost efficiency and bring in private investment.