Kunlun, Hefei City Ink Cooperation Deal to Promote LNG Vehicles (China)

May 31, 2012

Kunlun Energy said it has signed a “Cooperation Agreement in Relation to Joint Promotion of High Efficient Utilization of LNG Clean Energy” with municipal government of Hefei, Anhui Province, which aims to further promote LNG vehicles and speed up the construction of refilling station and auxiliary projects in Hefei.

According to the agreement, both parties will accelerate the substitution and promotion of LNG vehicles for oil-fueled vehicles such as public buses, intercity coaches, municipal public vehicles and heavy duty trucks.

Up to the end of 2015, the amount of LNG vehicles will reach 20,000, and the number of LNG vessels will reach 1,000, and the proportion of substituting for Product oil will reach 5%; up to the end of 2020, there will be 50,000 LNG vehicles and the proportion of substituting for Product Oil will reach 10%-15%.

Simultaneously, Hefei will invest RMB 1 billion in constructing refilling stations, which will drive the development of LNG-related industry chains (such as modification of vehicles and vessels as well as equipment manufacturing) with the investment amount of RMB 2 billion.