Transportation tariff of natural gas pipeline and tariff setting methodologies and regulation
The economic efficiency of a gas pipeline investment is manifested by cost recovery that is impacted by the volume of gas flow through pipelines and tariff. Of which, gas volume tends to be less volatile due to limitation of designed capacity. Tariff, which is flexible by adjusting one or more components such as qualification, quantity of gas flow, distance, type and nature of transportation services, is an important element in maximising the possibility of capital recovery. In this paper, the authors present the characteristics of tariff, methodologies and regulation of tariff setting for natural gas pipeline transportation.
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