South China Morning Post: China Gas Trims Natural Gas Sales Target Amid Economic Slowdown

China Gas Holdings, one of the mainland's largest city natural gas distributors, cut its gas sales target for the coming financial year by 8.3 per cent after gas demand growth slowed more than expected amid the economic slowdown and high gas prices.

The firm aims to sell 11 billion cubic metres (bcm) of the cleaner burning fuel in the 12 months to the end of March next year, down from the 12 bcm it targeted earlier, but 20.7 per cent higher than last financial year's actual sales of 9.11 bcm.

But it unveiled a target of 14 bcm for the 12 months to March 31, 2017, signalling its expectation of higher demand growth once Beijing cuts gas prices and makes further progress in letting the market decides prices.

"China's economic growth slowdown has affected the demand for all forms of energy … but our sales growth rate will far exceed the national average," company president Liu Minghui said after it posted a 31 per cent year-on-year rise in net profit to HK$3.37 billion for the 12 months to March 31.

"But we are optimistic for our growth in the 2017 financial year since we have plenty of new projects coming on stream. "Only 190 of our 273 city gas projects are in operation, with the rest in preparation or trial operation." MORE