04 December 2012 08:36 [Source: ICIS news]
SINGAPORE (ICIS)--Hong Kong-listed oil and gas company Sino Oil and Gas said on late Monday that it plans to invest in a liquefied natural gas (LNG) plant based on coal-bed methane (CBM) at Sanjiao in China’s Shanxi province.
Under the memorandum of understanding (MOU) signed on 3 December, Sino Oil and Gas will spend yuan (CNY)30m-35m ($4.8m-5.6m) to purchase the entire equity interest of Hong Kong’s Pipeline International, which is one of the partners of the proposed LNG plant, the statement said.
Pipeline International is planning to form a joint venture with two Chinese companies to operate the 1.2m cubic metre/day LNG plant at Sanjiao in Shanxi province and will have a 30% stake in the JV, the statement added.
The company has targeted to sell no less than 100,000 cubic metre/day of CBM from the Sanjiao Block by the end of this year.
Investing in the mid-stream liquefaction project will help to improve its profitability, Sino Oil and Gas said.
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