Gas price cut hits Chinese producers

摘要

China has cut natural gas prices to stimu-late flagging demand,which will have a substantial impact on the revenues of the country’s state-run producers. Main economic planning body the NDRC lowered the city-gate,or whole-sale,gas price by an average of 0.14-0.17 yuan/m3(60-80￠/mn Btu)on 28 Febru-ary.The reduction,effective from 1 April, will cut$4bn-5bn from the gas sales revenues of PetroChina,Sinopec and CNOOC based on apparent gas demand —production plus net imports—last year of 180bn m3.It will cost the compa-nies even more if demand goes up as a result of the cut.PetroChina’s parent company,state-owned CNPC,expects demand to hit 200bn m3this year.