China Gas Holdings, one of the leading non-state controlled companies in the Chinese city-gas and LNG sectors and state-backed Beijing Gas Group, have signed a strategic cooperation agreement to stabilise LNG flows to North China.
China Gas is involved in more than 640 projects in cities and towns with city-gas pipeline concessions, 32 natural gas pipeline transmission projects and over 550 LNG and compressed natural gas filling stations for vehicles.
Both companies are listed on the Hong Kong stock exchange. Beijing Gas is a subsidiary of Beijing Enterprises Holdings, the state backed company that holds 40 percent of PipeChina, the national pipelines company.
After Beijing Gas first listed its shares in 1997, it successfully transformed into an integrated public utilities company with core business covering city gas, water treatment and waste treatment.
The Beijing Gas city-gas business now covers over 47 million users with more than 470,000 kilometres of pipelines in operation.
It also engages in other businesses, including ownership of Yanjing Beer.
Beijing Gas is a key shareholder in the huge Tianjin Nangang LNG import project to be located east of the capital Beijing.
“Under the China Gas-Beijing Gas agreement, both companies will expand relevant natural gas projects beyond Beijing, explore cooperation in procurement of imported natural gas resources, construction and utilisation of urban gas storage tanks and supply of natural gas to downstream companies,” said a statement.
“Furthermore, both parties have reached an understanding to cooperate in LNG emergency reserve project (including a receiving terminal, storage tanks and outbound pipelines for LNG) being developed by Beijing Gas in Tianjin Nangang,” they stated.
