Northern New Energy Holdings Ltd has announced that Hua Xia Northern (Tianjin) New Energy Technology Development Ltd – a Sino-foreign equity joint venture (JV) – has signed a letter of intent with several companies to establish a new JV LNG company – Tianjin Jinre Hua Xia New Energy.
The letter was signed with the following companies: Tianjin Jinre Heat Company Ltd; CNOOC Gas & Power Group; Tianjin Ding Wang Property Services Co. Ltd; and Tianjin Chengxi Heat Supply Co. Ld. The JV is for an LNG heat supply and integrated utilisation project in Xinkou, Xiqing District, Tianjin, China. It will cost RMB50 million in investment, and Hua Xia Northern New Energy will account for 20% of interest in the JV.
The Executive Chairman and Executive Director of Northern New Energy, Mr. Hu Yishi, said: “I am pleased to see the new energy business making satisfactory progress. We have completed a number of projects in Tianjin, China and launched a project involving the replacement of coal-powered heat sources with natural gas last year. The expansion of our coverage to Xinkou reflects that we are headed in the right strategic direction. Each enterprise in the JV company equips with different know-how. We are very pleased to collaborate with CNOOC's subsidiary. We are confident the partnership will solidify the foundation of Northern New Energy and further strengthen our capability in tapping the clean energy business. We believe there is strong demand for coal-to-natural gas conversion heating projects in Northern China. Thus, we will look for opportunities to expand into other surrounding regions. In the long term, we will strive to expand into the global market and invest resources in regions possessing great potential. Looking ahead, we will also closely monitor the latest development in national policies and make timely adjustments to our business, allowing us to seize the opportunities created by favourable national policies."
Approval has already been granted by the Tianjin Construction Committee for the construction of heating facility for the model town of Xinhou, which will include the conversion of coal furnaces into LNG furnaces. The first phase of the coal-to-gas project will encompass the Jinjing metro line, Qingsha Road, Dangyang Road, and the intersection of Upper Xinkou village and Dangcheng village. The project will provide heating from an area covering 390 000 m2 (currently, the area only covers 290 000 m2), using over 2000 tpy of LNG. Gradually, this area will be increased to 4 million m2, and will use over 30 000 tpy of LNG.
The project will also develop other sectors, such as gas vehicle filling stations, natural gas supply for both civil and industrial use, as well as the integrated utilisation of LNG cold energy, based on the region’s conditions.
Edited from press release by David Rowlands
Read the article online at: https://www.lngindustry.com/regasification/16032016/chinese-jv-established-for-lng-heat-supply-and-integrated-utilisation-project-2134/