With the winter heating mode starting, domestic natural gas demand has also entered the peak season.

Recently, provinces such as jiangsu, jilin, peking, and shanghai have issued related notices to activate the gas price linkage mechanism.

Analysts Zuo Qianming and Li Chunchi from China Securities Co.,Ltd. mentioned in a previous report that in October, China's natural gas production increased by 8.4% year-on-year.

At the same time, the cumulative apparent consumption of natural gas in the country from January to September was 318.37 billion cubic meters, a year-on-year increase of 10.3%. Among them, the consumption in September was 33.88 billion cubic meters, a year-on-year increase of 14.4%, with a growth rate higher than the year-to-date cumulative value.

Goldman Sachs analysts stated that if Europe faces tight natural gas supply this winter, the price of liquefied natural gas in Asia may soar to over $20 per million British thermal units.

"In the first half of the year, we actively conducted resident pricing, and by the end of July 2024, the company had completed about 59% of the adjustment for resident gas volumes. Thanks to the continued promotion of the gas pricing policy, the profit contributions from joint companies and associate enterprises have also improved during the first half of the year." enn energy (02688.HK) stated in its interim performance announcement.

China securities co.,ltd. research reports indicate that recently, hunan and peking have published documents to adjust downstream natural gas sales prices, accelerating the natural gas pricing.

Specifically, according to the henry hub natural gas price linkage adjustment mechanism, the first-tier residential gas price in changsha city will increase by 0.16 yuan per cubic meter, starting from December 1.

After the adjustment, the terminal sales prices for residential gas in changsha city will be 2.992 yuan per cubic meter for the first tier, 3.590 yuan per cubic meter for the second tier, and 4.488 yuan per cubic meter for the third tier. The peking development and reform commission announced an increase of 0.47 yuan per cubic meter for the sales price of non-residential pipeline henry hub natural gas from November 15, 2024, to March 15, 2025.

Overall, with the improvement of the henry hub natural gas price linkage mechanism, downstream city gas prices are expected to continue rising steadily.

Relevant hong kong stocks in the natural gas sector:

China res gas (01193), enn energy (02688), beijing ent (00392), tian lun gas (01600), china gas hold (00384), shanghai dazhong public utilities (01635), etc.