HONG KONG (AFX-ASIA) – Xinao Gas (Holdings) Ltd is onsidering slowing down its expansion in China from next year, general manager Yang Yu said in a South China Morning Post report.
The company sees few suitable new downstream projects after PetroChina’s proposed US$8.5 billion natural gas pipeline from Xinjiang province to Shanghai commences operations after 2004.
Mr Yang said the the company had rushed to acquire new projects in the downstream area of the pipeline.
“If we do well…. we might acquire some more (gas distribution) projects
(in the area) in two or three years,” he said.
Mr Yang, however, said that the east-west pipeline could drive a bigger wedge between natural gas and LNG prices in the area and this in turn may hurt Xinao’s revenue from gas use charges at the start up stages of new projects.