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Natural Gas is Overtaking Oil in China

PetroChina Company Limited (ADR) (Public, NYSE:PTR), China Natural Gas, Inc. (Public, NASDAQ:CHNG) and Sinoenergy Corporation (Public, NASDAQ:SNEN) are all in the business of creating energy for the market. Although PetroChina is involved in other markets such as oil, natural gas is the uniting factor in these companies’ profiles.

PetroChina is the largest natural gas transporter and distributor in China. According to the company’s first quarter report in 2010, marketable natural gas output was measured at 609.9 billion cubic feet. The energy giant managed to increase cash flows by 57.3% to ¥138.856 billion cash on hand. Energy is getting bigger and bigger in China, and this company is increasing outputs and pulling more money in by the day. PetroChina is producing, refining and transporting oil and natural gas at a remarkable pace. This company is extending pipelines and getting involved in new areas of production quickly. PetroChina has a market cap of $202.20 billion and their stock is currently trading at $110.48 on the NYSE.

CNG (China Natural Gas, Inc.) is one of the top dogs in providing pipeline natural gas for industrial, commercial and residential use. This company also provides compressed natural gas for vehicles in Xi’an China. CNG is the first China-based natural gas company to be publicly traded in the United States. This company owns and operates 120 kilometers of compressed natural gas pipeline in Xi’an. CNG is a red company, but is definitely green. One of CNG’s profit driven businesses focuses on converting gasoline vehicles into hybrid vehicles. Currently, the company has been able to provide the city of Xi’an with compressed natural gas for its 20,000 taxis, 5,000 buses and 3,000 special purpose vehicles. CNG has a market cap of $148.71 million, and is currently being traded at $7.02 per share on the NASDAQ.

Sinoenergy develops and operates retail compressed natural gas stations in China. They also manufacture compressed natural gas vehicles. The company creates natural gas conversion kits for automobiles and gas station equipment in China. Sinoenergy manufactures custom pressurized containers for use in the petroleum and chemical industries. Sinoenergy is doing so well that they are paying back a good portion of their notes payables in 2009 that are not due until 2012. The total assets for Sinoenergy were $140.991 million according to their Amended 10-Q filed on March 31 2010. Sinoenergy’s market cap is $27.23 million, and their stock is currently being traded at $1.71 per share on the NASDAQ.

Each of these companies are involved in different aspects of the production, refinement, distribution and conversion of compressed natural gas into the marketplace. Oil in a downturn. Businesses and consumers are working towards finding an alternative energy source that is cheaper. Natural gas is currently standing as the solution, because the infrastructure is in place and people are ready for a different kind of energy source. These Chinese companies are all taking on the reality of natural gas in different ways, but they all agree on where they will be investing their money in the future.

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