China National Petroleum Corporation (CNPC) and China Petrochemical Corporation (Sinopec) have released their natural gas pricing plans in 2025-2026, with CNPC slightly raising comprehensive prices but Sinopec cutting comprehensive prices from the 2024-2025 cycle.
Source: OilChem
Pricing plan of CNPC: The floating volume is increased, leading to a slight growth in comprehensive prices compared to the previous cycle.
Changes from the previous cycle:
The proportion of controlled gas in non-heating season decreases from 65% to 60%, while that in heating season remains unchanged, with the price increase remaining at 18.5%, which means that the proportion of low-priced parts in non-heating season retreats.
The proportion of fixed part of uncontrolled gas in heating season and non-heating season is adjusted from 32% and 42% to 33% and 38%, respectively, and the price increase remains unchanged at 70%.
The proportion of floating part of gas rises from 3% in the previous cycle to 7%, and pricing still refers to the CLD price index at Shanghai Petroleum and Natural Gas Trading Center (SHPGX). This adjustment raises the overall purchasing price of urban gas companies.
The increase in peak-shaving volume drops from 100% in the previous cycle to 90%.
Taking an urban gas company in North China as an example, its comprehensive gas price during the non-heating season is Yuan 2.6/cubic meter, which is equivalent to an increase of 41% in gate station prices. The comprehensive price during the heating season is around Yuan 2.7/cubic meter, which is equivalent to an increase of 47% in gate station prices. The price increase during the non-heating season is within Yuan 0.1/cubic meter.
Pricing plan of Sinopec: The maturity of resource pool construction has improved, and Sinopec's comprehensive prices fall compared to the previous cycle.
Changes from the previous cycle:
The volume proportion and the price rise of controlled gas both stay unchanged from the previous cycle.
The proportion of base volume increases from 20% to 35%. In terms of price increase, that in the non-heating season falls from 40% to 30%, and that in the heating season falls from 60% to 50%, a noticeable decrease.
The proportion of priced volume retreated from 40% to 30%, with prices referring to Sinopec's comprehensive long-term contract price. It is reported that the calculation formula of the long-term contract price has been adjusted compared to the previous cycle, and the comprehensive price is lowered compared to the previous cycle.
The proportion of spot volume wanes from 10% to 5%, and the price refers to the CLD price index at SHPGX.
Compared with CNPC, Sinopec pays more attention to the transmission of its own resource pool pricing in the pricing of annual pipeline gas contracts.
Taking an urban gas company in East China as an example, the comprehensive purchase price in the non-heating season is Yuan 2.77/cubic meter, and that in the heating season stands at Yuan 3.05/cubic meter. The price slides by Yuan 0.18-0.22/cubic meter compared to the previous cycle.