Piped gas volume at China Gas Holdings (00384.HK) is expected to reach 30 billion cubic meters by 2020, compared with 7 billion cubic meters in the financial year ended March 31, 2013, president Liu Minghui told a media briefing Monday. In the shorter term, piped gas production is expected to reach 8.5 billion cubic meters this financial year and 10 billion cubic meters in 2015.
Amid the country’s worsening air pollution problem, the use of natural gas will be encouraged and its supply will increase, bolstering the company’s growth prospects, Liu said. However, it takes time to promote the use of natural gas as it will affect the oil refining industry.
Liu expects natural gas price to be about 3.15 yuan (52 US cents) per cubic meter by 2015, closer to international levels, and northeast China and Guangxi region will have greater potential for natural gas distribution development in the next few years.
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