China LNG Group signs two framework agreements
China LNG Group has entered into framework agreements with Ordos EITC to develop the LNG businesses in Ordos City and Hong Shun in relation to, among others, provision of LNG passenger vehicles and conversion of passenger vehicles from using fuel to LNG.
According to the framework agreement with Ordos EITC, China LNG agreed to construct LNG refueling stations, storages and LNG distributed energy stations in Ordos. It will also convert the passenger vehicles from using fuel to LNG and help the local transport and passenger transport companies to replace the passenger vehicles and heavy trucks from using fuel to LNG.
The company agreed to invest in the production of LNG from natural gas with a state owned enterprise and both parties will strengthen their cooperation in the energy sector where China LNG agreed to develop coalbed methane, shale gas, coal gas and other coal chemical and natural gas related industries in Ordos.
In order to achieve conservation of energy, optimizing energy structure, reduction of transportation costs and protection of the environment, Hong Shun and China LNG agreed to develop and promote the application of LNG vehicles in Hohhot. China LNG agreed to invest in the cooperation and is responsible for the technical support together with a mega stated owned enterprise. The company will provide LNG passenger vehicles or replace the existing passenger vehicles from using fuel to LNG and provide financial support, insurance services and operating leases services through Ping An Securities Limited, a strategic partner of the company, in relation to provision of LNG passenger vehicles or replacement of the existing passenger vehicles of Hong Shun.
The company agreed to construct sufficient LNG refueling stations throughout the routes of Hong Shun’s vehicles with a mega stated owned enterprises to ensure the sufficiency of supply of LNG, while Hong Shun agreed to assist China LNG in communication with the passenger and public transport companies in Hohhot to promote the application of LNG vehicles.
Press Release, September 11, 2014