Investment Rating - The report maintains an "Accumulate" rating for the gas industry [1] Core Insights - The ongoing concerns regarding the ceasefire timeline in the Russia-Ukraine conflict have led to supply worries, resulting in a rise in European gas prices [1] - Domestic natural gas pipeline pricing mechanisms have been released, which are expected to lower costs and increase volume for urban gas companies [1] Price Tracking - As of August 1, 2025, the week-on-week changes in gas prices are as follows: US HH -4.4%, European TTF +4.9%, East Asia JKM +1.1%, China LNG ex-factory -1.1%, and China LNG CIF +5.1% [10][11] - The domestic and international gas price disparity is noted, with domestic prices showing a decline [10][11] Supply and Demand Analysis - The average total supply of natural gas in the US increased by 0.3% week-on-week to 1,132 billion cubic feet per day, while total demand rose by 4.6% to 1,096 billion cubic feet per day [14] - In Europe, natural gas consumption for the first four months of 2025 was 192 billion cubic meters, a year-on-year increase of 7.4% [17] - Domestic natural gas apparent consumption in China decreased by 0.2% year-on-year to 210.3 billion cubic meters for the first half of 2025 [26] Pricing Progress - Nationwide pricing adjustments are gradually being implemented, with 64% of cities having undergone residential pricing adjustments, resulting in an increase of 0.21 yuan per cubic meter [35] Important Announcements - The National Development and Reform Commission and the National Energy Administration issued guidelines to improve the pricing mechanism for provincial natural gas pipeline transportation, aiming to facilitate high-quality industry development [48][49] Investment Recommendations - The report suggests focusing on companies that can optimize costs and benefit from the new pricing mechanisms, particularly recommending New Hope Energy, China Resources Gas, and Kunlun Energy among others [1]