Shenzhen Gas Corp. Co. Ltd. is focused on achieving a target of selling 1.19 billion cubic meters (bcm) of gas this year, but tepid economic growth may hinder its efforts, investor relations representative Xie Guoqing told Interfax on Monday.

"The problem [with the full year target] is the economic situation is not so promising but we'll keep working hard on it," said Xie.

Shenzhen Gas's net profit jumped by 41.73 percent year-on-year to RMB 482.73 million ($77 million) in the first nine months of the year, according to results released on Saturday.

Sales revenue rose by 16.84 percent over the same period to RMB 6.74 billion ($1.08 billion) for the three quarters, on the back of increased pipeline gas sales, the company said. Shenzhen Gas sold 483 million cubic meters (MMcm) of pipeline gas in the first half (H1) of 2012, in line with a company target.

The Shanghai Stock Exchange-listed company is 51 percent-owned by the Shenzhen municipal government. Hong Kong and China Gas Company Co. Ltd. better known as Towngas, is the second-largest shareholder with a 16.66 percent stake.

Shenzhen Gas has won a number of big deals this year, consolidating its position as the dominant gas supplier in Shenzhen, China's first designated ‘special economic zone' and a pioneer in market-orientated reforms instituted in 1980 by paramount leader Deng Xiaoping.

Shenzhen Gas acquired a 30-year sole franchising license for pipeline gas supply from the Shenzhen government in 2004, compelling consumers that wish to offtake pipeline gas directly to negotiate with Shenzhen Gas rather than with upstream suppliers such as China National Petroleum Corp.

In August 2010, Shenzhen Gas agreed to offtake 4 bcm/y from CNPC's 2nd West-East Gas Pipeline beginning in the second half of 2011 until 2039. The relatively low cost of pipeline gas compared to pricey liquefied natural gas imports from Qatar has benefited Shenzhen Gas by spurring the city's pipeline gas utilization, particularly among households.

The company agreed in August this year to supply a total of 1.15 bcm/y to Baochang Gas Power Generation Co., the Guangdong arm of Huadian Power International Corp. Ltd.

Shenzhen Gas's latest coup came last week when it signed a 25-year purchase and sales agreement with local power utility Shenzhen Yuhu Power Co. Ltd. on Monday to supply around 800 MMcm/y from 2014 to 2039. Yuhu will use the gas to fuel expansions of two gas-fired power plants.

The deal is the second in two years between the two companies after Shenzhen Gas agreed to sell 374 MMcm/y to Yuhu in October 2010.