Beijing Gas Blue, Kunlun Gas Ink Cooperation Agreement
Beijing Gas Blue Sky Holdings has entered into a non-binding strategic cooperation agreement with Guizhou branch of PetroChina Kunlun Gas, it said July 4.
The two parties have agreed that if Kunlun develops a gas pipeline business in a place where Beijing Gas Blue’s city gas business is located, the project will be controlled by Kunlun and invested in by Beijing Gas. The two companies will invest in city gas projects jointly in other areas which will then be controlled by Beijing Gas Blue.
The two companies will together be developing the LPG business in Guizhou province and will be involved in trading of LPG, LPG refuelling and acquisition and merger of LPG business, Beijing Gas Blue said.
This agreement comes a couple of months after Beijing Gas Blue entered into a three years LNG supply agreement with Kunlun Energy Shandong, a wholly-owned subsidiary of Kunlun Energy Company.
"With the implementation of air pollution prevention and 'coal-to-gas' plans by the PRC government, the demand for natural gas has been increased rapidly in Guizhou Province. The entering into the strategic cooperation agreement enables both parties to jointly invest and develop projects through existing sub-gas pipeline business and city gas business, including merger and acquisitions of downstream city gas projects based on replacement cost approach,” said Tommy Cheng, CEO of Beijing Gas.
Cheng added that Beijing Gas Blue and Kunlun Guizhou will optimise the synergy benefits among various business segments, facilitate the strategic development of full natural gas value chain in southwest region of China and further strengthen the cooperative relationship following the LNG supply agreement entered in May 2018.
Kunlun Guizhou is the sole financing platform, investment vehicle and management platform for downstream natural gas business of natural gas segment of PetroChina Kunlun Gas in Guizhou province. Kunlun Guizhou is principally engaged in the development, project construction and operation of natural gas businesses for residential, commercial and industrial use in Guizhou province.
Beijing Gas Blue Sky Holdings is an integrated natural gas provider, distributor and operator, with an emphasis on the midstream and downstream natural gas development. Its business includes construction and operation of CNG and LNG refueling stations for vehicles; construction of natural gas pipelines and operation of city gas projects by providing piped gas; direct supply of LNG to end-users; and trading and distribution of CNG and LNG. It has business presence in several Chinese provinces, including Liaoning, Shandong, Anhui, Zhejiang, Hubei, Guizhou, Sichuan and Hainan.