Beijing Gas Blue to Work with Thai Firm
Beijing Gas Blue Sky Holdings and Thai Global Power Synergy Group (GPS) have agreed to cooperate in natural gas and LNG sector with focus on southeast and northeast Asia and Oceania, Beijing Gas Blue said January 24.
The Chinese firm has entered into the subscription agreement with Surangrat Chirathivat, a key shareholder and president of Global Power Synergy Group. Beijing Gas Blue also entered into a non-binding strategic cooperation agreement with GPS, to create a strategic cooperation relationship between the parties.
The two parties will together work on sourcing and trading of LNG for buyers in southeast Asia and northeast Asia; supplying of LNG to power plants and/or other infrastructure in Thailand and southeast Asia; increasing natural gas usage in Thailand; and utilizing from each other’s competitive advantages, Beijing Gas Blue said.
GPS is an investment company in various energy related assets as well as energy commodities trading business. The company aims to strengthen electricity security for Thailand, and natural gas is deemed to be the main source of electricity generation for the country.
The Thai firm has conditionally agreed to issue 150 million new shares to Chirathivat, representing approximately 1.50% of the issued share capital. The net proceeds of the subscription shall be approximately HK$83mn, will be used to finance the expansion of the natural gas business and as the general working capital.
Beijing Gas Blue Sky Holdings is an integrated natural gas provider, distributor and operator, with an emphasis on the midstream and downstream natural gas development. Its business includes construction and operation of CNG and LNG refueling stations for vehicles; construction of natural gas pipelines and operation of city gas projects by providing piped gas; direct supply of LNG to end-users; and trading and distribution of CNG and LNG. It has business presence in several Chinese provinces, including Liaoning, Shandong, Anhui, Zhejiang, Hubei, Guizhou, Sichuan and Hainan.