China’s Shandong Shengli plans $12m investment in natural gas

06 December 2011 07:10  [Source: ICIS news]

GUANGZHOU (ICIS)--China’s Shandong Shengli is planning to invest yuan (CNY) 76.5m ($12.1m) on natural gas projects in Guangxi and Shandong provinces, the company said on Tuesday.

According to its statements to the Shenzhen Stock Exchange, the company will spend CNY10m to set up a company, Nanning Shengxin Natural Gas, at Nanning in Guangxi province, to operate compressed natural gas (CNG) and liquefied natural gas (LNG) business.

It will spend another CNY40.5m for an 81% interest in a planned joint venture, Qinzhou Shengli Natural Gas, to build gas stations and pipelines at Qinzhou in Guangxi province.

The company will also invest CNY21m through its wholly owned subsidiary, Shandong Lihuacheng Energy, for a 60% stake in a proposed joint venture, Shandong Huasheng Energy, to build a LNG storage facility at Yanzhou in Shandong province.

The facility will have a capacity of 300,000 cubic metres (cbm)/day in the first phase and an additional 300,0000-500,000 cbm/day for the second phase constructions.

Another CNY5m would be invested through Shandong Lihuacheng Energy for a 50% interest in a proposed joint venture, Shandong Shengjia Petroleum and Gas, to build two filling stations at Jining in Shandong province for retailing of oil products and natural gas.

The company did not state the operation and construction timetables of those projects.

Shandong Shengli said that those projects are based on good projections on natural gas markets in China as the country is increasingly focused on clean energy use.

($1 =CNY6.33)

By: Fanny Zhang
+65 6780 4359

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