China LNG Group Invests in LNG Storage Firm

China LNG Group on Thursday announced it has bought 51 percent stake in a company involved in investment, development, management and operation of LNG storage and transportation projects in China.

The remaining 49 percent interest will be owned by two unnamed companies.

The company will pay RMB 45.9 million (approx. $6.9 million) for the stake, China LNG said in a statement without disclosing the name of the firm it was investing in.

China LNG Group said the acquisition was a part of its plan to further develop its LNG business. Under the agreement, the target company will invest in construction of LNG storage and distribution centres for sale and distribution of LNG to industrial, commercial and residential customers and LNG refuelling stations that significantly further expand the Group’s LNG related business activities.

Since 2014, the China LNG Group has entered into several negotiation and strategic cooperation agreements with local government, private and public companies in China with respect to promotion of LNG application and development of LNG business. Its LNG business mainly focuses on the Beijing, Tianjin, Hebei, the Yangtze River Delta and the Pearl River Delta regions and currently provides finance leasing to LNG vehicles and vessels in the market.