SCMP: Timely Russian gas deliveries to China look far from certain

Shares of China Gas Holdings and its largest shareholder Beijing Enterprises Holdings have surged more than 10 per cent on the back of Russia's long-term natural gas supply deal with China that was signed last month, as they are seen as the biggest beneficiaries with substantial operations in China.

Investors' optimism is reasonable as the import deal effectively links the gas-hungry Chinese market to the world's largest gas exporter, Russia, securing long-term energy for Chinese distributors whose growth has been crimped by supply.

But the companies may have underestimated the risk of potential delays in gas delivery and the time it will take for output to ramp up. This could be a challenge for China Gas to hit its target to triple distribution volume with Russian gas in the next five financial years.
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