China LNG enters cooperation agreement relating to LNG

China LNG has announced that it has entered into an investment cooperation agreement with Linyi Trade City Administrative Commission (LTCAC), in order to promote the application of LNG businesses in Linyi, China.

China LNG intends to establish an investment company with registered capital of approximately HK$2.5 billion in Linyi.

In accordance with the overall planning of the people’s government of Linyi City, China LNG shall invest in construction of LNG refuelling stations (including fixed refuelling stations, skid-mounted stations, gas tank skid of temporary stations); portable LNG charging cars to provide LNG filling services for boilers and construction machines; LNG central stations to provide LNG filling services for industries and civilian users who are unable to access the city LNG pipeline network; LNG transportation and distribution system and acquisition of gas pipeline and gas filling equipment franchise; LNG liquefaction plants and 30 LNG refuelling stations.

China LNG will establish a fund, together with LTCAC, to support the construction of an e-commerce industrial park and other development projects in Linyi trade city.

The company will assist the small and medium-sized enterprises in Linyi to enter into the Hong Kong capital market or to be listed in the Hong Kong stock exchange through merger, acquisition and reorganisation. Moreover, China LNG intends to establish a finance leasing company in Linyi to provide services for LNG vehicles and equipment with preferential service terms.

China LNG anticipates an investment of approximately HK$10 - 63 billion.

LTCAC will promote the application of LNG in Linyi trade city, strive for related preferential policies and subsidy from the Linyi government, and set up a management and working team, including the personnel from both parties, to speed up the promotion and application of clean energy projects.

Edited from press release by Callum O'Reilly

Read the article online at: https://www.lngindustry.com/small-scale-lng/25062015/china-lng-enters-cooperation-agreement-943/