China's Yuan Heng Gas to Buy LNG from Qujing Gas

Hong Kong listed Yuan Heng Gas Holdings on September 23 signed an agreement with Qujing Gas for supply of LNG for its Yunnan cooper and zinc industry users in Maguan County, Wenshan, Yunnan province, China.

Qujing Gas will supply LNG to industrial users in Qujing region of Yunnan province, invest in the facilities of the gasification station of the project, manage the gas transmission business of gas supply units on a daily basis and provide maintenance and repair to the gas supply facilities, Yuan Heng Gas said in a Hong Kong stock exchange filing. No financial details were provided by the company. Yuan Heng Gas also did not say anything about the quantity of gas it would be buying. 

Guangzhou Yuanheng, a subsidiary of Yuan Heng Gas, shall be responsible for the gas purchase and transmission according to the pricing formula set out in the agreement. Both parties to the agreement will share the net profit equally from the revenues.

Qujing Gas is a Sino-foreign jointly owned enterprise of Yunnan Petrochemical Gas Co., which is an investment holding company under Yunnan Investment Group Co. Qujing Gas has 19 member units, with eight franchise areas and a number of investment construction projects, including: LNG peak regulation reserve station, LNG storage and distribution stations, LNG cylinder stations, LNG/CNG transmission stations, LNG vehicular refilling stations, city-gas, etc., providing natural gas services to residential, commercial, vehicle and industrial users.

“Co-operation with Qujing Gas in respect of LNG trading and the project allows the company to enhance its business coverage in the South-west market so as to boost the growth in natural gas business,” Yuan Heng Gas said.

Yuan Heng Gas is an investment holding company and its subsidiaries and associates are principally engaged in the trading of oil and gas products and the provision of related consultancy services and processing, distribution, sales, trading and transportation of LNG and other auxiliary operations and networks in China. 

Shardul Sharma