Chinese mainland piped-gas operator China Gas Holdings Limited (China Gas) announced on Sunday that it has acquired 38.69 percent equity interest in Chongqing Ding Fat Industries Co. Ltd (Chongqing Ding Fat) for a total consideration of 62.16 million yuan (US$7.75 million) from a listed A-share company.
According to a press release from the China Gas, Chongqing Ding Fat is the only regional gas operator in the Chinese mainland with gas exploration right. The company owns 40 gas wells with total annual purification and production capacity of 150 million cubic meters.
The Hong Kong listed company said, this is not only a major step in its advance upstream into gas exploration and processing in the natural gas production chain, but also allows the company to ensure stable gas supply for its city gas projects.
China Gas is optimistic about the development potential of Chongqing Ding Fat. The acquisition of equity interest in Chongqing Ding Fat represented the company's first step to tap the natural gas business in Chongqing as well as its first attempt to participate in upstream natural gas supply operations.
China Gas is a natural gas services operator, principally engaging in the investment, operation and management of city gas pipeline infrastructure, distribution of natural gas to residential and industrial users, construction and operation of oil stations and gas stations.
China Gas has exclusive piped gas development rights in 49 cities and regions in Chinese mainland and has pipeline network of more than 4,200 kilometers serving over 720,000 household users and nearly 1,300 industrial and commercial users.
(Xinhua News Agency June 5, 2006)
