Hong Kong Listed Blue Sky Power to Acquire Stake in Sichuan Based Shale Gas Player

Hong Kong listed Blue Sky Power Holdings Limited will acquire equity interest in a company engaged in natural gas projects in China’s Sichuan Province, the company said Thursday.

Blue Sky Power, through its wholly-owned subsidiary, Shenzhen Yaojiade Energy Resources Limited will buy 75 percent stake in Sichuan Rich Reid Energy Development Co., which is engaged in natural gas, shale gas and coal energy investment business.

The acquisition will cost Blue Sky Power RMB17,250,000 (approx. $2.8 million).

Sichuan Rich Reid Energy Development Co. currently operates and manages power generation plants in Sichuan Province with an aggregate installed capacity of 1,000KW fuelled by shale gas. The company has entered into the shale gas supply contract with the Zhejiang branch company of PetroChina for the procurement of shale gas, which then utilized the shale gas as a source of clean fuel to operate and manage the power generation plant to generate electricity.

Sichuna Rich also plans to invest in a natural gas liquefaction facility which will utilize the shale gas as the gas source and be processed into LNG.

Blue Sky expects to vertically integrate with the Sichuna Rich in distributing LNG to the Group's own gas stations and become a wholesaler of LNG to other gas station operators.

Blue Sky Power is engaged in the natural gas distribution business in the China since late 2013 and has entered into agreements to acquire natural gas business in Shandong, Jiangsu and Liaoning Province.