Delong Holdings Enters JV to Build LNG Fueling Stations, China

Delong Holdings said that its subsidiary, Dezhong International Financial Leasing, is working with Xi’an Xilan Natural Gas to incorporate a limited liability joint venture company for the purpose of constructing and operating liquefied natural gas fueling (LNG) stations in Xingtai City, Hebei Province, People’s Republic of China.

The company and Xi’an Xilan have submitted the relevant documentation for the incorporation of the JV Company to the authorities on 12 November.

The Parties have agreed that the JV Company will be incorporated with a registered capital of RMB10,000,000, of which RMB5,100,000 (representing 51% of the equity of the JV Company) will be contributed by Xi’an Xilan and RMB4,900,000 (representing 49% of the equity of the JV Company) will be contributed by Dezhong.

The capitalization of the JV Company will occur at such time as Dezhong and Xi’an Xilan may mutually determine, but in any event not later than 11 March 2013. Any increase in the share capital of the JV Company will be determined by mutual agreement between Dezhong and Xi’an Xilan. In the event the JV Company is not incorporated by 11 March 2013, either of the Parties may determine not to proceed with the incorporation of the JV Company.

The Parties have agreed that, before incorporation of the JV Company, Xi’an Xilan shall arrange for the design, planning and construction of the LNG fueling stations, which will be transferred to the JV Company following the incorporation of the JV Company.

Xi’an Xilan will also arrange for the training and employment of the employees at the LNG fueling stations, with such task to be undertaken by the JV Company after its incorporation.

In addition, Xi’an Xilan shall also provide to the JV Company a stable and long – term supply of LNG at a pre-determined price in accordance with the provisions of the Agreement.

The Parties have agreed that Dezhong shall arrange the necessary land required for the LNG Project to the JV Company at market lease rates for at least 20 years.

Dezhong will also arrange for the necessary governmental permits and licenses for the operation for the LNG fueling stations.

[mappress]
LNG World News Staff, November 19, 2012