China natural gas prices likely to rise 20-30 pct -report
China is likely to raise well-head natural gas prices by 20 to 30 percent under a new pricing regime expected to be in place in January, local media reported on Tuesday, a range in line with earlier forecasts by analysts, Reuters reported.
Citing an industry executive in the city-gas distribution business, Caijing Magazine said gas prices to end consumers would likely rise by 10 percent, a boon for gas distributors like Xinao Gas Holdings <2688.HK>.
An increase in well-head gas prices, last raised in November 2007, will be welcomed by the country's dominant oil and gas producers PetroChina <0857.HK> and Sinopec Corp <0386.HK>.
The report did not give a timetable for the price increase, but analysts anticipate it to be imminent.
Caijing reported last week that China would shift to a weighted mechanism from the start of 2010, taking into account prices for domestically produced and imported gas.
China last revamped its gas pricing at end of 2005, linking the clean fuel with alternative fuels like coal and crude.
But the government has only raised prices twice since, oblivious to volatile energy markets that saw crude near $150 per barrel in July 2008 and spot liquefied natural gas prices collapse from $22 (per mmbtu) peak.