China Oil Gangran announces two strategic agreements
Published by Lydia Woellwarth,
China Oil Gangran Energy Group Holdings Ltd (China Oil, together with its subsidiaries, the ‘Group’), which has received shareholder approval to be renamed ‘Century Energy International Holdings Ltd’, announces two strategic co-operation agreements in relation to business development and financing arrangement. With respect to business development, on 10 October 2021, the Group entered into a non-legally binding strategic co-operation framework agreement with Yantai Yindu Industry Co., Ltd and Shandong Pan-Asia International Energy Distribution Center Co., Ltd, which will result in the acquisition of a 51% equity interest in Shandong Pan-Asia. Through this agreement, the Group will be able to invest in Yantai Xigang LNG receiving terminal and gas pipelines projects. Subsequently on 11 October 2021, the Group entered into a non-legally binding strategic co-operation agreement with Beijing Qinglu Zhongbing Asset Management Co., Ltd, under which the two parties may establish funds or joint venture companies to provide funding, if needed, to support the Group's future business development needs.
The Framework Agreement about the Yantai Xigang LNG Project is the first major project the Group has pursued in the field of energy and environment following its appointment of a new management team comprising industry heavyweights, marking an important step on the path of business transformation.
According to the Framework Agreement, the Group proposes to acquire from Yantai Yindu a 51% equity interest in Shandong Pan-Asia, through which the Group will invest in the Yantai Xigang LNG receiving terminal and the LNG gas pipelines projects, as well as obtaining the access rights and operation and management rights of both projects. After the completion of the acquisition, the Group plans to develop and operate LNG import and trading business domestically and internationally where appropriate, and downstream sales and market-ing of LNG in China through Shandong Pan-Asia or its subsidiaries.
Furthermore, in order to broaden the channels of financing and further reduce financing costs, the Group has entered into a Co-operation Agreement with Beijing Qinglu Zhongbing, under which the two parties may establish funds or joint venture companies to source funding in support of the business development and investment projects of the Group. Beijing Qinglu Zhongbing may further develop and expand its business by leveraging its expertise in the financial services business and business connections, to assist the potential acquisitions and resources integration of the Group. Beijing Qinglu Zhongbing was established in the PRC in 2017. It obtained the qualification of private equity investment fund manager as approved by the Asset Management Association of Chi-na in the same year.
Mr. Cheung Yip-sang, the Chief Executive Officer of the Group said, “We are pleased to announce the two strategic co-operation agreements which mark a major step in our business development and financing. It is with much excitement that we will be able to invest in the construction and operation of Yantai Xigang LNG terminal, a State key project, to capture opportunities from the ‘Belt and Road’ initiative and the National 14th Five-Year energy strategic plan. The funding arrangement we have entered into with Beijing Qinglu will provide us access to new investors and lower cost of capital when the need arises. These two major strides are expected to benefit our business development and accelerate our business transformation.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/12102021/china-oil-gangran-announces-two-strategic-agreements/
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