China Gas Holdings signed an agreement with CNOOC Gas and Power Group for strategic cooperation on the development of the entire industrial chain of natural gas.
Under the agreement, the two companies plan on constructing liquefied natural gas (LNG) bunkering stations, LNG filling stations for vehicles as well as in other downstream projects and transportation projects for LNG tank containers.
In respect of LNG bunkering stations, CNOOC Gas and Power Group aims to use its know-how from setting up its liquefied natural gas terminals while the China Gas Holdings will support the projects through planning sites, ports and resources.
The pair will also pick existing fuel stations owned by China Gas Holdings in order to carry out equity cooperation and also seek cooperation on new projects.
In addition to vehicle and vessel refilling projects, the parties will select high-quality downstream projects, which include but not limited to city gas, rural coal-to gas replacement, industrial park gas supply, coal-fired boiler renovation, LNG point-to-point supply, co-generation, and distributed energy.
Both parties agreed to set up five joint ventures in Shandong Province, Hebei Province, Hainan Province, Guangdong Province and Jiangsu Province by the end of September in 2018. The two companies noted they will provide resources for at least 50 percent of the demand of the projects.