China Natural Gas Dedicates for Compressor Stations throughout China
2009-07-31 Source：english.chinabuses.com
English.chinabuses.com:China Natural Gas, Inc. ("China Natural Gas"), a leading provider of compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for industrial, commercial and residential use in Xi'an, China, today announced that the Company's variable interest entity Xi'an Xilan Natural Gas Co., Ltd. ("Xilan") has completed a Joint-Venture Cooperation Agreement (the "JV Agreement") with China National Petroleum Corporation Kunlun Natural Gas Co., Ltd. ("CNPC Kunlun"), a wholly owned subsidiary of China National Petroleum Corporation ("CNPC") and the largest supplier of compressed natural gas in China.
The goal of the joint-venture ("JV") is to establish a win-win strategic cooperation between Xilan and CNPC Kunlun, dedicated for the processing and distribution of CNG throughout China. The purpose of the JV will be to build and operate CNG compressor stations and fueling stations along CNPC's natural gas pipelines in China, sell compressed natural gas and provide vehicle conversion services from gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. CNPC Kunlun will hold 51% ownership of the JV, and Xilan will hold 49% ownership.
"CNPC Kunlun is a subsidiary of CNPC, the designated state-owned enterprise by CNPC to specialize in vehicular CNG business. It is also the largest CNG supplier in China, with business operations in 18 provinces and over 70 cities throughout China. In our view, CNPC Kunlun has dominant market leading position, strong brand, broad market coverage, and well-established distribution. We believe China Natural Gas has leading technology, rich experience, and deep expertise in developing, positioning, and managing natural gas operations, and the combination of our full-range CNG business line and pending LNG business line can provide us with unparalleled competitive advantages.
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