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Project Insights

China gas distributors set for steady profitability

Gross margins on gas sales, an important driver of earnings growth for China’s gas distributors, will remain stable this year despite concerns they could be compressed by retail gas price cuts Gross margins on gas sales, an important driver of earnings growth for China’s gas distributors, will remain stable this year despite concerns they could be compressed by retail gas price cuts.
By Colin Shek 20 May 2019 Asia Pacific / Supply & Demand 0 34231
City-gas storage tanks belonging to ENN. (ENN)

The margins of most companies that distribute gas to homes and businesses in China are expected to remain steady this year despite retail price cuts in some key provincial markets and ongoing uncertainty over the future of connection fees

China’s gas demand was up by 10% in the first four months of 2019, to 97 billion cubic metres, the National Development and Reform Commission said on Friday. Despite the continued strong gas demand growth this year, the share performance of...