China Resources Gas counts on Russia deal boost

China Resources Gas, one of the mainland's largest city gas distributors, said the boost in gas supply from the US$400 billion Sino-Russian gas agreement signed by the two nations recently would have a positive impact on the company.

"Currently we have 23 projects in northeast China," chief financial officer Ken Ong Thiam Kin said yesterday. "CRG should have more than 30 projects in the area by 2018."

He said a lack of supply in northeast China had prevented the company from selling more gas. "If the Russian gas can be delivered in 2018 or 2019 it will impact our business very positively," Ong said.

The Sino-Russian gas pipeline will be able to send 38 billion cubic metres (bcm) of gas a year to northern China from as early as 2018, according to the agreement.

Ong said he expected a large proportion of this would be consumed in the three northeast provinces and some northern provinces such as Hebei, due to geographical reasons.

The National Development and Reform Commission has said it expects the mainland's gas demand will rise to 400 bcm by 2020 from 168 bcm last year.