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China’s ENN consolidates for competitive edge

The energy company’s move to combine its gas utility and upstream developer will create an integrated company better-positioned to compete in a future deregulated Chinese gas market The energy company’s move to combine its gas utility and upstream developer will create an integrated company better-positioned to compete in a future deregulated Chinese gas market.
By Tang Tian 6 days ago Asia Pacific / Companies & Finance 0 34761
ENN's Zhoushan terminal in China. (ENN)

The key issue: ENN Energy Holdings Chairman Wang Yusuo plans to transfer his 32.8% stake in the Hong Kong-listed city gas distributor to ENN Ecological, which would strengthen the company's position in an increasingly competitive Chinese gas market.

Interfax analysis: The proposal to consolidate Chinese gas utility ENN Energy Holdings within sister company ENN Ecological (ENN EC) represents an opportunity to keep gas procurement costs at ENN Energy in check amid expectations of intensifying gas-on-gas competition in the Chinese market in coming years.

ENN Energy...