China LNG Group Limited has entered into a strategic cooperation framework agreement with Baotou Rare Earth High-Tech Industrial Development Zone Committee, in relation to the investment in LNG projects in the zone, located in Baotou City, Inner Mongolia, China.
The framework cooperation agreement would include the following:
- Baotou Development Zone Committee agrees to fully support the company in the development of LNG businesses with a state-owned enterprise in the zone.
- China LNG Group intends to set up two subsidiaries with registered capital of US$ 30 million and US$ 50 million or above, respectively, to engage in “LNG application-oriented businesses” and “Finance Leasing Businesses” in relation to transformation into, and leasing of, LNG vehicles.
- Baotou Development Zone Committee agrees to support and give preferential taxation policies on Enterprise Income Tax and Value Added Tax to the subsidiaries.
- Baotou Development Zone Committee agrees to provide suitable locations in the zone for the construction of LNG refuelling stations for passenger vehicles, and encourage the industrial users in Baotou Development Zone using LNG.
China LNG Group Limited is principally engaged in property investment and trading of securities and development of LNG businesses. Since 2013, the company has worked with provincial governments in China in relation to the development of LNG applications in the PRC.
On 10 September 2014, the company entered into an agreement with the Ordos Economic and Information Technology Commission in relation to investment in the development of LNG businesses in Ordos City, Inner Mongolia. China LNG Group similarly signed a cooperation agreement with Inner Mongolia Hong Shun Travel Limited in relation to the provision of LNG passenger vehicles.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/small-scale-lng/07102014/china-lng-group-agreement-with-baotou-development-zone-1548/