China’s Tian Lun Gas to sell its stake in Cangxi Datong

14 September 2012 07:02  [Source: ICIS news]

SINGAPORE (ICIS)--China’s Tian Lun Gas will sell off all its 51% stake in Cangxi County Datong Natural Gas and Investment (Cangxi Datong) for yuan (CNY)90m ($14m), the gas operator and distributor said late on Thursday.

An agreement was signed on 13 September to sell those interests to Hong Kong-based Golden Dragon Century, Tian Lun Gas said in a statement.

The company is selling its stake because it thinks that investment returns from Cangxi Datong’s liquefied natural gas (LNG) project will not meet its original target, citing delay on project construction and higher feedstock cost.

Cangxi Datong has not yet started commercial operation at its 300,000 cubic metres/day (cbm/day) LNG project at Cangxi in Sichuan province. 

The company will use the proceeds for other projects, including a proposed 400m cbm/year LNG facility in Chongqing, the statement said.  

($1 = CNY6.33)

By: Fanny Zhang
+65 6780 4359

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