LNG stake for Beijing Gas Group

Beijing Gas JingTang Company Ltd, which owns 29% equity interest in LNG port facility provider PetroChina Jingtang LNG Co., Ltd, is in the process of being acquired by Beijing Gas Group Co., Ltd (part of Beijing Gas Blue Sky Holdings Limited) from Beijing Gas Group’s subsidary Beijing Gas Company (Beijing Gas HK).

Tommy Cheng, co-chairman and executive director of the Group, said: “Currently, most of the gas distributors and private enterprises in the PRC are unable to obtain the right to use LNG terminals. We expect that the Acquisition will further secure the source of supply of natural gas to Beijing Gas Blue Sky and enhance our bargaining power of imported LNG, laying a solid foundation for the Group’s LNG import business.

“Looking ahead, coal-to-gas and clean heating will be the key opportunities of the natural gas industry. We expect that the Acquisition would further promote the Group’s strategic development of the entire business chain of liquefied natural gas, create synergies among the Group’s different business segments and enhance the Group’s competitiveness and overall profitability.”

PetroChina Jingtang, based in Tangshan City, China, provides port facilities for LNG vessels, cargo handling services, warehousing and loading services of LNG within the port area, plus receiving, storage and re-gasification of LNG.

The acquisition is estimated to be worth up to RMB1,008m.