ENN Energy Holdings (2688.HKG) and China Petroleum & Chemical (Sinopec; SNP.NYSE, 600028.SHA) offered US$2 billion in cash today for Hong Kong-based China Gas (0384.HKG), Bloomberg reported. The offer is for HK$3.50 per share, 25% higher than China Gas’s last close. The company provides piped-gas to 6.6 million residential customers and 41,981 industrial and commercial users in mainland China. “China Gas’s stock has been undervalued for a long while, so both investors are really getting on board at the right time,” said Shi Yan, a Shanghai-based analyst at UOB-Kay Hian. The company’s net income increased to US$48 million over the past two quarters, compared with US$12 million a year earlier. However, the arrest of two senior China Gas executives on embezzlement charges earlier this year have caused a slump in its stock price. The Chinese government plans to increase natural gas consumption to 10% of total energy demand by 2020, from a current 4%.