Investor Presentaiton
Natural Gas Pricing Reform
Shanghai Petroleum & Natural Gas Exchange
Commenced trading on 1 July 2015
ENN 新奥
➤ The Group procured 939mil m³ of piped gas and 68,000 tonnes of LNG through the exchange
➤ Aim at becoming a national and international trading platform
Non-residential gas tariff adjustment
Effective from 20 November 2015
➤ City-gate price -0.70/m³
Average downstream tariff adjustment -0.70/m³
70 out of 82 affected projects completed pass through
Further adjustment is negotiable between suppliers and
gas operators
Residential gas tariff
➤ NDRC proposed to establish tier pricing
mechanism for residential gas usage in all city-
gas projects
68 projects already set up tier pricing
mechanism. Other projects are in preparation
for public hearing.
1.0x
1st Tier
Average gas
volume consumed
by 80% of users
20% upward
adjustment
City-gate Price
No limit for
downward
adjustment
1.2x
2nd Tier
Average gas
volume consumed
by 95% of users
1.5x
3rd Tier
Average gas
volume consumed
exceeds 2nd tier
volume
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