OREANDA-NEWS. October 20, 2011. China Gas Holdings Ltd a natural gas distributor expects its annual gas sales volume to almost double by 2015 and gas prices to increase.

Mr Eric Leung Joint Managing Director of China Gas Holdings said sales volume was expected to rise to 10 billion cubic metres in 2015 from 5.2 billion this year. He said that the growth would be driven by the completion of China new west-to-east natural gas pipeline, gas pipelines linking China with Kazakhstan and Myanmar and several liquefied natural gas receiving terminals along China's coast.

Mr Leung also said he expected China to increase natural gas prices around the end of the year narrowing the price gap with gasoline and diesel. He said that "The price of natural gas for vehicle use is only half that of gasoline and diesel. Chinese prices for natural gas face upward pressure."

An industry source with knowledge of the situation said a plan to revamp the country fuel-pricing scheme and a new scheme for the country natural gas pricing have been submitted to the State Council, China cabinet for approval.

The source said without giving details that the new natural gas pricing system could allow domestic gas prices to be pegged to international oil prices.

China gas imports have made up of more than 20 percent of domestic consumption in recent months compared with none in early 2006.