Energy Conversion and Financial Overview
Non-residential Natural Gas Price Hike
On 12 August 2014, NDRC announced another round of
city-gate price hike for existing volume in most
provinces by RMB0.4/m³ (RMB0.12/m³ increase in
Guangdong & Guangxi) effective from 1 September
2014. The price of incremental volume remains
unchanged
This is in line with PRC government's objective to fully
liberalize natural gas pricing mechanism by 2015
On 28 June 2013, the NDRC published the Notice on
Natural Gas Price Adjustment for non-residential natural
gas consumption. The new ceiling city-gate prices are
set based on two-tier pricing mechanism, (i) existing.
volume (with price hike of not more than RMB0.4/m³)
and (ii) incremental volume (to be priced at 85% of the
weighted average prices of fuel oil and LPG with
weighting of 60% and 40% respectively)
The Group is proactively communicating with customers
and local pricing bureaus to pass on the incremental gas
cost.
Pass Through Progress
Price hike since September 2014
Average upstream cost adjustment for
existing volume (RMB/m³)
No. of city-gas projects affected
No. of city-gas projects completed
No. of CNG stations affected
No. of CNG stations completed
ENN 新奥
0.32
73
64
273
228
Price hike since July 2013 (completed)
Average upstream cost adjustment (RMB/m³)
No. of city-gas projects affected
0.49
55
Average tariff adjustment for C/I customers
(RMB/m³)
0.49
No. of CNG stations affected
225
Average tariff adjustment for CNG stations
(RMB/m³)
0.42
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