Ge Long Hui·2026-03-04 03:01Group 1 - The core viewpoint of the report indicates that the situation in the Middle East is causing fluctuations in global oil and natural gas prices, with potential supply impacts exceeding 20% on the global LNG market if disruptions persist [1] - The short-term impact on Chinese gas utilities is considered limited, as spot LNG accounts for approximately 10% of their total natural gas resources, resulting in minimal immediate effects on procurement costs [1] - However, sustained high oil and gas prices may lead to increased procurement costs for pipeline gas and LNG, potentially affecting industrial gas demand, prompting a cautious outlook for the sector [1] Group 2 - The report expresses a relative preference for Kunlun Energy due to its limited exposure to spot LNG risks, suggesting it may perform better than peers in a high energy price environment [1] - A target price of HKD 9 and an "Overweight" rating are currently assigned to Kunlun Energy [1]