What are the critical economic hurdles behind the use of natural gas in Power Market in East China and how they should be addressed?
Article from: OGEL Archive issue , in Economic and Commercial Context for Oil, Gas and Energy Law
Summary
China is going to build a long distance 4000km pipeline project to meet gas demand in East China by 2004, 40% of which is planned for power generation. Successful promotion of gas consumption in the power industry is crucial for ensuring the project's viability. However, unlike many OECD countries, the piped gas price is high and coal-fired power plant costs very competitive, making the economic position of gas-fired generation in China's power system much different. This paper examines the economic role of using natural gas in power generation in the East China ...