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Energy & Environment

Gas companies soaring

Stocks in Hong Kong-listed utilities companies are soaring on the back of the rapid expansion of China's gas network.

The country plans to spend more than US$7 billion on gas pipelines and city networks in the next five years and hopes to quadruple its use of natural gas to 8 percent of household fuel by 2010.

Shares of Xinao Gas Holdings, Hong Kong's top-performing utility stock, have surged 116 percent this year.

Wellington Management, Capital Group and JP Morgan Chase are among companies that have invested in Xinao and other Hong Kong-traded gas suppliers this year.

Xinao, based in Lanfang, holds rights to distribute gas in 39 Chinese cities and said it is in talks on 20 more.

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