By Alison Lui
HONG KONG Oct 13 China Gas Holdings Ltd
, a natural gas distributor, expects its annual gas
sales volume to almost double by 2015 and gas prices to
increase, a company executive said.
Sales volume was expected to rise to 10 billion cubic metres
in 2015 from 5.2 billion this year, Joint Managing Director Eric
Leung told Reuters in an interview on Thursday.
The growth would be driven by the completion of China's new
west-to-east natural gas pipeline, gas pipelines linking China
with Kazakhstan and Myanmar, and several liquefied natural gas
receiving terminals along China's coast, he said.
Leung also said he expected China to increase natural gas
prices around the end of the year, narrowing the price gap with
gasoline and diesel.
"The price of natural gas for vehicle use is only half that
of gasoline and diesel. Chinese prices for natural gas face
upward pressure," he said.
A plan to revamp the country's fuel-pricing scheme and a new
scheme for the country's natural gas pricing have been submitted
to the State Council, China's cabinet, for approval, an industry
source with knowledge of the situation said on Wednesday.
The new natural gas pricing system could allow domestic gas
prices to be pegged to international oil prices, the source
said, without giving details.
China's gas imports have made up of more than 20 percent of
domestic consumption in recent months, compared with none in
The government is facing mounting pressure to lift gas
prices because the cost of at least half of the current imports,
sourced from Turkmenistan, were reported to be linked to crude
Shares of China Gas, whose major shareholders include China
Petroleum & Chemical Corp (Sinopec) ,
SK Holdings Co Ltd , Indian state gas company GAIL
India Ltd and Oman Oil Co, finished up 4.2 percent on
China Gas hoped take over the remaining 51 percent stake it
does not already own in Chinese liquefied petroleum gas (LPG)
distributor Panva Gas Holdings Ltd by the end of the year, Leung
China Gas planned to spin off its LPG business for listing
by 2015, he added.
(Writing by Charlie Zhu; Editing by Chris Lewis)