Changfeng Energy, CNOOC Sign Gas Deal

Changfeng Energy has finalised gas supply contract with Hainan Fuel Chemical Co., Ltd., a subsidiary of China National Offshore Oil Corporation (CNOOC).

“A gas quota of approximately 25 million m3 (883 million ft3) will be secured and provided to the company in 2016 at a favorable price by CNOOC,” Changfeng said in a statement Thursday. 

The price under the new contract, while higher than under the previous 24 million m3 gas quota with CNOOC, remains favorable compared with the market price, the company said. It is expected that the gross margin for gas distribution utility in Sanya for 2016 will be lower than in previous years. It is anticipated that a new gas supply contract will be signed when this contract expires.

The deal was first announced on December 4, 2015.

Changfeng Energy is a natural gas service provider with operations located throughout China. The company services industrial, commercial and residential customers, providing them with natural gas for heating purposes and fuel for transportation. The company has developed a significant natural gas pipeline network as well as urban gas delivery networks, stations, substations and gas pressure regulating stations in Sanya City & Haitang Bay.