China LNG Group Inks Agreement to Invest in LNG Projects in Baotou, Inner Mongolia

China LNG Group Limited on Monday announced that it has entered into a strategic cooperative framework agreement with Baotou Rare Earth High-Tech Industrial Development Zone Committee in relation to investment in the projects of application of LNG in Baotou Rare Earth High-Tech Industrial Development Zone in Baotou City, Inner Mongolia, China.

The framework cooperation agreement would involve the following:

(1) Baotou Development Zone Committee agreed to fully support the company to develop the LNG businesses with a mega stated owned enterprise in Baotou Development Zone;

(2) the company intends to set up two subsidiaries with registered capital of $30 million (approximately HK$232,506,000) and $50 million (approximately HK$387,510,000) or above respectively to engage in “LNG application-oriented businesses” and “Finance Leasing Businesses” in relation to transformation into and leasing of LNG vehicles;

(3) Baotou Development Zone Committee agreed to support and give preferential taxation policies on Enterprise Income Tax and Value Added Tax to the subsidiaries; and

(4) Baotou Development Zone Committee agreed to provide suitable locations in Baotou Development Zone for construction of LNG refueling stations for passenger vehicles using LNG and encourage the industrial users in Baotou Development Zone using LNG.

China LNG Group is principally engaged in property investment and trading of securities and development of LNG businesses. Since 2013, the company is working with governments in various provinces in the China in relation to the development of the LNG businesses.