The Latest Threat For China’s Natural Gas Demand

A drive to cut electricity prices for end-users has prompted Beijing to reduce gas-fired power plant tariffs, which has threatened the survival of many of them, Wood Mackenzie reports, adding to already substantial pressure on the industry from the ongoing trade war with the United States. “The new regulations will cause at least a 5 to 6 percentage point decline in the already poor margins of gas power plants,” said Wood Mac principal consultant Frank Yu. “Delivered fuel costs at most gas power plants have only declined by 10%…