Gas stocks were generally higher. As of press release, China Gas (00384) rose 5.26% to HK$7.41; China Resources Gas (01193) rose 4.85% to HK$23.8; and Xinao Energy (02688) rose 2.82% to HK$61.95.
The Zhitong Finance App learned that gas stocks were generally higher. As of press release, China Gas (00384) rose 5.26% to HK$7.41; China Resources Gas (01193) rose 4.85% to HK$23.8; Xinao Energy (02688) rose 2.82% to HK$61.95; and Ganghua Smart Energy (01083) rose 1.32% to HK$3.07.
According to the news, Tianfeng Securities pointed out that since 2024, international natural gas prices have continued to fall, driving down domestic spot LNG import prices. On the one hand, the reduction in natural gas import costs is expected to directly reduce the procurement costs of urban fuel companies. On the other hand, the three major oils have a large say in domestic gas supply, and the decline in sea gas prices may indirectly drive the decline in urban fuel procurement costs by reducing the procurement costs of the three major oils.
Furthermore, terminal net prices continued to advance. As of March 15, 2024, price linkage mechanism documents or price adjustment notices have been issued, involving 125 administrative units at the city and county levels. In regions where the extent of price adjustments has been determined, the average price increase for basic residents is 0.26 yuan/cubic meter. In 2024, gas price linkage mechanisms in various regions will continue to advance, which will benefit urban combustion companies to fix gross margins.