China: Kunlun Unit Enters LNG Market in Tianjin

PetroChina Dagang Oilfield Company recently signed the LNG Project Strategic Cooperation Framework Agreement with Tianjin Traffic Group.

Mr. Li Wenqiang, Party Secretary of Dagang Oilfield, Mr. Wu Dai, President and General Manager of Tianjin Traffic Group, and Mr. Tian Weijian, Deputy General Manager of Tianjin Traffic Group, attended the signing ceremony.

Mr. Fang Wu, Chief Accountant of Dagang Oilfield, and Ms. Xiao Zhonghui, Deputy General Manager of Tianjin Traffic Group, signed the cooperation agreement on behalf of each side.

According to the agreement, Dagang Oilfield will be the exclusive partner collaborating with Tianjin Traffic Group on the LNG projects and industry. Both parties thereof will, through due diligence work, jointly establish a project team for the purpose of researching the comprehensive cooperation plan viable for the LNG project. Binhai New Energy Co., Ltd., of which Kunlun Energy Company Limited is the holding company, is a joint stock company through co-financing with Dagang Oilfield. The joint stock company will launch full-scale cooperation with a portion of members of Tianjin Traffic Group on the promotion work for the LNG projects focusing on replacement and modification of LNG vehicles as well as deployment and construction of LNG refilling stations.

As the only first-rate passenger and freight service company in Tianjin City, Tianjin Traffic Group is the largest potential demand side in the LNG market in Tianjin. Both parties of the agreement believe that such cooperation will benefit Tianjin Traffic Group for lower fuel cost in addition to the city-wide application and promotion of LNG vehicles in Tianjin. The purpose of such cooperation is to introduce a model project to the LNG passenger & freight service sector in Tianjin City, while additional contribution will be made to the development of economy and society in Tianjin City.

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LNG World News Staff, July 17, 2012