PetroChina’s shares fuelled by move to increase natural gas prices for commercial users
China’s top producer lifts prices of the commodity by up to 15 per cent
Shares of PetroChina, the nation’s largest natural gas producer, rose after it raised the price of the cleaner burning fuel by 10 to 15 per cent this winter, amid strong demand and tightened supply spurred by Beijing’s campaign to reduce pollution by curbing the use of coal.
Distributors will have to pay 10 per cent more for the fuel from this winter (November to March 2018) on so-called base volumes equal to their purchases between April to September 2017, according to a notice issued late last week by the energy giant.
They will have to pay 15 per cent more for the difference between the base volume and actual consumption last winter (October 2016 to March 2017), it said.
The price increase applies to commercial users only.
For any additional requirements, distributors will have to bid at the Shanghai Petroleum and Natural Gas Exchange to buy the volumes they need, subject to a maximum cap of 20 per cent above the regional benchmark.
Deals struck in recent weeks at the exchange have all been conducted at the maximum allowed prices, distributors said.