CaptainJJack

China Natural Gas: Deeply Undervalued

My concern here is different. The business model is something between a utility and an integrated oil company.

The short version of my question is, where are they getting their gas, and how are they hedging the commodity market risks?

If the business model is like the pipeline companies in the US where the contract is for the transportation of NG regardless of the market price, then this could be a very good investment.

However, if the business is to buy NG on one end, and sell it on the other, taking the commodity price risk, then I will pass.