Due to government-capped domestic wholesale prices, PetroChina incurred a 8.92 billion yuan ($1.23 billion) loss at its natural gas import division during the July-September period, the company told investors during a live-streamed roadshow following its earnings release on Thursday.
PetroChina, the country’s top gas importer, brought in 20.94 billion cubic meters of natural gas in the third quarter, including piped gas and shipments of liquefied natural gas.
The losses were incurred because prices of piped gas, which are indexed to the global oil market on a retroactive basis, exceeded the domestic government-regulated city-gate prices, the company said.
PetroChina is raising exports of gasoline and aviation fuel, after domestic demand for both products was harder hit than that for diesel during Beijing’s lengthy COVID-19 restrictions.
In a drastic policy shift to help lift sagging exports, Beijing in late September released 15 million tonnes of fuel export quotas, mostly to mostly refiners including PetroChina.
Reporting by Chen Aizhu; Editing by Susan Fenton, Kirsten Donovan – Reuters
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