Sanya Changfeng Offshore Natural Gas Distribution Co. Ltd., a wholly owned subsidiary of Changfeng Energy Inc., has entered into a joint venture (JV) agreement with Tangshan Caofeidian Development Investment Group Co. Ltd. (CFD Group) to pursue LNG trading, natural gas distribution, transportation, and related infrastructure construction.
The 50/50 JV, named Caofeidian Evergrowth Energy Co. Ltd. (Evergrowth), is based in Tangshan City, Hebei province, China. Changfeng and CFD Group respectively own 50% each of the Joint Venture. The registered capital of the JV is RMB 200 million, RMB 40 million of which is required within 30 days of incorporation, with the remaining RMB 160 million required within 10 years of incorporation. The registered capital is to be funded equally by Changfeng and CFD Group. Changfeng will fund its portion of RMB 20 million from its internal cash flows. Under the joint venture agreement, both parties of the Joint Venture agree to work with a third party to establish an entity to operate and manage an energy resource exchange in Northern China.
Under the JV agreement, both parties agree to work with a third party to establish and operate an energy resource exchange in Northern China.
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/21072015/changfeng-energy-to-pursue-lng-market-1043/