Natural gas source will be released timely, leading city gas companys bargaining power will be enhanced

category:Finance
 Natural gas source will be released timely, leading city gas companys bargaining power will be enhanced


The subsequent establishment of the national pipeline network company will promote the fair opening of the infrastructure such as natural gas pipeline network to the third-party market entities, and accelerate the establishment of the upstream and downstream natural gas price linkage mechanism. In this context, the large-scale urban gas companies that have obtained the urban franchise rights will be the first to get the opportunity to negotiate with the upstream gas purchase. Foshan Fuling energy (002911), a leading city gas company, signed a medium and long-term gas source purchase and sale contract with Guangdong Dapeng, PetroChina, CNOOC and other upstream suppliers, and established an international natural gas trading subsidiary to directly purchase imported LNG cargo from international natural gas suppliers, ensuring a high-quality and reliable gas source.

According to the price monitoring center of the national development and Reform Commission, with the diversification of LNG import entities, the competition of natural gas supply in coastal provinces is easier to form, and more provinces will cancel the price control of gate stations in the later stage. At present, the south is the main area of natural gas consumption. Although the policy continues to improve the price mechanism of natural gas, due to the natural geographical location, the South lacks the deep geology of large-scale gas storage, and there are not many enterprises with gas storage equipment. At present, there are other relatively perfect storage and distribution station facilities for storing refined oil and liquefied petroleum gas in the Pearl River Delta. Restricted by geological conditions and high requirements of equipment and technology, the upstream and downstream are lack of enthusiasm to build gas storage.

However, freon energy (002911) has been actively studying LNG peak storage project last year, in order to further expand to the upstream of the industrial chain, to meet the national requirements for the construction of gas storage facilities and the companys gas demand, while reducing the companys gas source cost. In addition, freon energy is also exploring new energy business. Recently, the company said on the interactive platform that it would further develop new energy business such as heating and distributed energy business, and plan to invest in large-scale gas projects such as Cogeneration in the operation area. The data shows that in April 2020, the apparent consumption of natural gas will increase to 3.8% , urban gas volume growth 15.8% u3002 CICC predicts that the gross fuel difference of 2q20 city is expected to reach a high level in recent years, and there will be more profit margin to boost gas volume. In addition, relevant national policies require upstream gas suppliers to reduce the price of industrial gas, which will also promote the consumption of some natural gas. Source: Chen Hequn, editor in charge of dongfang.com_ NB12679

However, freon energy (002911) has been actively studying LNG peak storage project in the last year, in order to further expand to the upstream of the industrial chain, to meet the national requirements for gas storage facilities construction and the companys gas demand, while reducing the companys gas source cost. In addition, freon energy is also exploring new energy business. Recently, the company said on the interactive platform that it would further develop new energy business such as heating and distributed energy business, and plan to invest in large-scale gas projects such as Cogeneration in the operation area.

The data shows that in April 2020, the apparent consumption of natural gas will increase to 3.8% , urban gas volume growth 15.8% u3002 CICC predicted that the gross fuel difference of 2q20 city is expected to reach a high level in recent years, and there will be more profit margin to boost gas volume. In addition, relevant national policies require upstream gas suppliers to reduce the price of industrial gas, which will also promote the consumption of some natural gas.