Zhonghua Gas Holdings has signed a memorandum of understanding with Shanghai Jiulian Group, a Shenergy unit, on cooperation in the area of liquefied natural gas.
Zhonghua Gas and Shenergy Jiulian cooperate to form a 60/40 joint venture to explore the end-users market in Yangtze River Delta region.
The JV will be principally engaged in the sale of LNG, sale of LPG, engineering of LNG pipelines, sale, installation, maintenance of LNG delivery equipment, technology development, consulting and transfer of heating systems, technology development of new energy, etc, Zhonghua Gas said in its statement.
Zhonghua Gas intends to integrate the gas supply business of its existing customer resources in the Yangtze River Delta, such as existing point-to-point supply of LNG, decentralized energy, direct supply of industrial LNG, vehicle and ship refueling etc., into the LNG sales channel and business of the JV, and constantly expand the business scope of the JV and improve the market share.
It will also be responsible for obtaining the qualification, license, permits, and approval for the JV to be engaged in LNG storage, transportation, sales and other related businesses as soon as possible.
Shenergy Jiulian as the LNG supplier for the JV will guarantee the sufficiency and stability of LNG supply and give necessary supports for the respective businesses of the JV, the statement reads.
For Zhonghua Gas, this cooperation, on the one hand, enables it to expand the scope of the LNG business, on the other hand enables it to secure the supply of LNG resources and to expand its business to the high potential market in the Yangtze River Delta region, and then to expand across the country as it planned.