Changfeng Energy, EDF Plan China JV

China focused gas utility, Changfeng Energy, and EDF (China) Holding will look into the feasibility of setting up a joint venture to pursue energy utilization and low carbon energy projects in Haitang Bay area of Sanya City, China.

A statement of intent has been signed by Sanya Changfeng New Energy Investment, a wholly owned subsidiary of Changfeng and EDF (China) Holding, a subsidiary of EDF Group, Changfeng said in a statement Tuesday. Changfeng and EDF Group respectively will own 50 percent each of the joint venture.

Toronto headquartered Changfeng 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 and Haitang Bay. The company believes Hainan provincial government’s plan to build Hainan Island into an international tourism destination by 2020.  More than 20 five-star hotels are expected to be built in next four to five years. Haitang Bay will be a fully developed world-class vacation township with a population of 250,000. All this, the company says, will significantly boost demand for gas. Currently, the company is supplying gas to the twelve newly built hotels in the area.

Changfeng has received the approval to build an LNG storage plant in the Haitang Bay.