Changfeng Energy of Canada said that its unit, Sanya Changfeng Offshore Natural Gas Distribution has entered into a Joint Venture agreement with Tangshan Caofeidian Development Investment Group to jointly pursue LNG trading, natural gas distribution, transportation, and related infrastructure construction.
The joint venture is named Caofeidian Evergrowth Energy and is based in Tangshan City, Hebei province. The registered capital of the joint venture is RMB 200 million. Changfeng and CFD Group respectively own 50% each of the JV, the company said in a statement.
RMB 40 million of funding for the registered capital is required within 30 days of incorporation; the remaining RMB 160 million is required within 10 years of incorporation. The registered capital is to be funded equally by Changfeng and CFD Group.
Changfeng will fund its portion of RMB 20 million from its internal cash flows. Under the joint venture agreement, both parties of the JV agree to work with a third party to establish and operate an energy resource exchange in Northern China.
1 RMB = 0.161014 USD