Hong Kong-based natural gas operator and distributor China Gas is joining forces with state-owned Sinopec to cooperate in several areas, including LNG.
The duo entered into a strategic cooperation deal that would enable them to “fully leverage each other’s advantages in resources and downstream market,” China Gas said in a statement on Thursday.
Under the deal, the duo would work in areas including natural gas procurement, LNG receiving terminal utilisation, downstream gas projects, natural gas and hydrogen stations, but also LPG business, the statement said.
“China is pushing ahead strongly in its development for green energy and an enhancement in energy ecosystem comprising production, supply and storage, in an effort to promote the mass adoption of clean energy using market-based principles,” Liu Ming Hui, managing director and president of China Gas, said.
He added the cooperation agreement with Sinopec represents a “major market breakthrough for the sustainable and rapid development for the group.”
“The group will accelerate the pace of its LNG imports to diversify supply sources while lowering gas purchase costs,” he said, adding this would boost the company’s ability to guarantee gas supply.
China Gas operates a total of 636 projects in cities with piped gas concession rights, 17 natural gas pipeline transmission projects, 556 CNG/LNG filling stations for vehicles and vessels, according to its website.
Furthermore, it operates 106 energy supply projects and one coal bed methane development project. It also holds a license to import and export LNG and other fuel products in China.