Neil Beveridge's questions to PETROCHINA CO (PCCYF) leadership • Q3 2021
Question
Neil Beveridge of Sanford C. Bernstein inquired about PetroChina's natural gas business, seeking guidance on potential Q4 losses, the company's ability to pass on higher LNG costs to customers, and whether the strong domestic gas production growth could be sustained to mitigate import losses.
Answer
CFO Chai Shouping acknowledged a Q3 import gas loss of RMB 6.4 billion. He explained that while most sales are under long-term contracts, costs for volumes outside these contracts are passed through, and spot LNG purchases are controlled. Mr. Chai confirmed that increasing domestic gas production is a core strategy to mitigate import losses, noting that the company has already exceeded its growth targets and allocated more CapEx to this area.