Beijing Gas Blue Sky Inks Energy Cooperation Deals

Chinese gas distributor Beijing Gas Blue Sky Holdings has entered into cooperation framework agreements with China Sam Enterprise Group and Shanghai-listed Changchun Sinoenergy Corporation, it said September 2.

Beijing Gas Blue Sky will work with China Sam to set up a fund to acquire companies in natural gas industry. The companies also plan to collaborate to utilise the Chaozhou and Jiangyin LNG receiving terminals to secure low cost and stable supply of LNG; and work on oil and gas exploration, Beijing Gas Blue Sky said. The two LNG terminals are being developed by Sinoenergy.

With Sinoenergy, Beijing Gas Blue Sky plans to collaborate on energy projects and trading of energy resource and LNG supply. Sinoenergy's two receiving terminals are scheduled to come online at the end of 2020.

"This cooperation is in line with national industry policy orientation on natural gas, and will improve the profitability and industry competitiveness of the LNG industry chain which the company has deployed for the past three years. Meanwhile, it will alleviate the gas supply tension in the Yangtze River Delta and Pearl River Delta, two major core LNG consumption markets in China," Beijing Gas Blue Sky CEO Tommy Cheng said.  

Beijing Gas Blue Sky said that with the agreements China Sam and Sinoenergy Corp hope to maximise the development value of the LNG resources they have already owned. Through this cooperation, Beijing Gas Blue Sky said it will rely on a total of 4mn metric tons/year LNG loading and unloading capacities (under full capacity) of Sinoenergy Corp's Jiangyin receiving terminal and Chaozhou receiving terminal in the Yangtze River Delta and the Pearl River Delta economic belts.