PetroChina Co, the country's biggest oil and gas producer, with an 80 percent share of the domestic natural gas market, was expected to earn over 18.4 billion yuan ($2.70 billion) as the prices of natural gas climbed up 25 percent Tuesday, according to media reports.
China increased the wholesale prices of natural gas by around 25 percent Tuesday. Natural gas benchmark prices will go up by 230 yuan to 1,155 yuan per thousand cubic meters, the National Development and Reform Commission (NDRC) said on Monday.
In 2010, China's natural gas production is expected to surpass 100 billion cubic meters, with 80 billion cubic meters coming from PetroChina, according to preliminary estimates. Thus the company may rake in 18.4 billion yuan more in annual sales after the prices hike.
Analysts believe the prices hike would help energy giants make up losses from the coming resource tax reform, paving the way for the long-awaited change.
It was reported that a trial run of the reform would begin in northwestern Xinjiang region soon. Crude oil and natural gas sales there will be levied a five percent resource tax, and the tax on coal would range from two to five percent, the Shanghai-based Oriental Morning Post said.
Once resource taxes are implemented around the country, PetrolChina will pay the taxes at 32.36 billion yuan a year, which is much higher than its earnings from the gas prices hike, the paper said.
The report also said China Petrochemical Corp (Sinopec), China's second-largest oil company, and China National Offshore Oil Corp (Cnooc), the country's major offshore oil and gas producer, would pay 9.54 billion yuan and 6.16 billion yuan, respectively, on resource taxes then, quoting the calculation results from related institutions.
China increased the wholesale prices of natural gas by around 25 percent Tuesday. Natural gas benchmark prices will go up by 230 yuan to 1,155 yuan per thousand cubic meters, the National Development and Reform Commission (NDRC) said on Monday.
In 2010, China's natural gas production is expected to surpass 100 billion cubic meters, with 80 billion cubic meters coming from PetroChina, according to preliminary estimates. Thus the company may rake in 18.4 billion yuan more in annual sales after the prices hike.
Analysts believe the prices hike would help energy giants make up losses from the coming resource tax reform, paving the way for the long-awaited change.
It was reported that a trial run of the reform would begin in northwestern Xinjiang region soon. Crude oil and natural gas sales there will be levied a five percent resource tax, and the tax on coal would range from two to five percent, the Shanghai-based Oriental Morning Post said.
Once resource taxes are implemented around the country, PetrolChina will pay the taxes at 32.36 billion yuan a year, which is much higher than its earnings from the gas prices hike, the paper said.
The report also said China Petrochemical Corp (Sinopec), China's second-largest oil company, and China National Offshore Oil Corp (Cnooc), the country's major offshore oil and gas producer, would pay 9.54 billion yuan and 6.16 billion yuan, respectively, on resource taxes then, quoting the calculation results from related institutions.
