Gas Shortages In Store As PetroChina Seeks To Sell Out

摘要

BMI View: A government decision to halt price increases is set to hurt state-run gas suppliers, which are obliged to meet consumer demand whatever the cost. This could provide opportunities for companies willing to bet on long-term gas price liberalisation. China looks set for another winter of disruptions to gas supplies following reports that China National Petroleum Corporation (CNPC) has already started withdrawing its winter gas reserves from storage. The government's freeze on gas price increases will put additional pressure on state-run companies, which are obliged to prevent shortages by increasing gas imports to make up for a lack of gas storage capacity. The pressure already appears to be causing discomfort for PetroChina, which is seeking to sell out of its contract to supply Beijing with gas, presenting opportunities for more patient rivals.