China Ocean LNG Acquires Stake in Jiangxi Gas

China Ocean LNG, part of China Ocean Shipbuilding Industry Group (COSIG), has acquired 47 percent stake in state owned Jiangxi PetroChina Kunlun Gas (Jiangxi Gas) for a total of RMB38.4m ($6.2m), COSIG said in stock exchange filing.

Sanya Chengda Investment Limited sold 23 percent stake while the other 24 percent interest was sold to China Ocean LNG by Nancheong Fubon Pipeline Gas Company Limited.

COSIG expects investment in Jiangxi Gas, which is controlled by state owned PetroChina Kunlun, will facilitate in strategic transformation of the its business.

“Further, the investment in Jiangxi Gas also enables the Group to enter into natural gas related business in the Yangtse river region, and hence laying foundation for the Group’s potential development in the energy logistics business,” COSIG stated Thursday.

Jiangxi Gas was established in 2010 and is involved in investment, operation, development, manufacture, sale, transportation and storage of natural gas and related products in Jiangxi Province of China.

Upon completion of the aforesaid acquisitions, Jiangxi Gas will be owned 51 percent by PetroChina Kunlun, 47 percent by China Ocean LNG and 2 percent by Sanya.

Last year, COSIG entered into a strategic cooperation agreement with Jianglian Heavy Industries to develop LNG carriers, LNG fueling stations, carriers adapted for ship-to-ship LNG transfer and modification of dual fuel LNG ships.