(EnergyAsia, December 4 2012, Tuesday) — Hong Kong-listed New Times Energy Corporation Limited said it has agreed to acquire an integrated liquefied natural gas (LNG) project in Zunyi City in China’s Guizhou province for a total of RMB35 million in cash and convertible bond. (US$1=RMB6.22).
New Times Energy said it will pay RMB17 million in cash and the rest through a convertible bond issue at HK$1 per share for the project that includes five LNG and compressed natural gas (CNG) stations for heavy duty trucks, a gas provision project for industrial parks and a high pressure pipeline system for the city.
In its statement, which did not reveal the seller’s identity, the company said the province will receive gas from a major pipeline linking Myanmar and China due to start up next year.
The new pipeline system will deliver 4.8 billion cubic metres (bcm) of gas to the province by 2015, rising to 6.8 bcm by 2020 to meet the demand of over 70% of Guizhou’s citizens, according to New Times Energy.
The company’s latest acquisition follows recent purchases of two separate LNG projects in the cities of Liupanshui and Zunyi in Guizhou province.
Stewart Cheng, New Times Energy chairman and executive director, said:
“The National Development and Reform Commission has recently released the ‘Natural Gas Utilisation Policy’, which highlights a number of prioritised items, namely cooking and supply of hot water to citizens and natural gas vehicles including buses, taxis, vehicles for logistics delivery and trucks. This greatly demonstrates the government’s determination to promote natural gas usage.”
Sun Jiang Tian, another New Times Energy executive director, said the company intends to continue expanding its gas distribution network in Guizhou province.
New Times Energy Corporation Limited is an integrated natural resources company engaged in the acquiring, developing and operating oil and gas projects in Argentina, the US and China.