Price cuts lure customers away from coal

China's natural gas demand has been boosted by price cuts aimed at switching users from coal to the cleaner fuel, according to one of the country's biggest gas distributors.

ENN Energy Holdings Ltd has seen its sales rise more than 15 percent in January and February as lower prices encouraged customers to switch, Vice-Chairman Cheung Yip-sang said in Hong Kong. ENN expects full-year sales to rise 15 percent, following last year's 11.5 percent jump to 11.3 billion cubic meters.

"The movement really picked up a lot of momentum," Cheung said. "The higher burning efficiency of gas and government pressure for better emission standards will help convert more industrial users from coal to gas."