South Korea's SK Buys into Chinese Gas Ventures
Hong Kong-based investment firm Beijing Gas Blue Sky (BGBS) said on July 6 it had sold 30% stakes in three gas businesses in China to South Korean energy firm SK E&S for yuan 129mn ($18.3mn). The transaction will help BGBS expand its gas operations in China, which cover the entire value chain, the company said.
SK will pay yuan 37.5mn for a share in Ningbo Beilun Bochen Energy Trading, yuan 30mn for a share in Huzhou Bochen Natural Gas and yuan 61.5mn for a share in Zhejiang Boxin Energy. All three are engaged in the sale and distribution of gas in East China. The first two also supply LNG to industrial users, as well as trading the product.
"East China is the core market of China's natural gas consumption. In the future, cooperation between both parties will focus on the natural gas business in East China, and then further expand to a nationwide level," BGBS said.
SK E&S, a subsidiary of Korean conglomerate SK Group, is active across the LNG value chain, from upstream gas production, through midstream LNG liquefaction, storage and regasification to downstream power generation and city gas distribution.