Hong Kong based Blue Sky Power Holdings Limited (Blue Sky), a company engaged in the natural gas distribution business in the PRC since late 2013, has entered into an acquisition agreement in Yunnan Province in China that will further the development of Liquefied Natural Gas (LNG) refuelling infrastructure and grow the heavy duty natural gas fleet.
Specifically, Blue Sky has entered into an acquisition agreement with Zhongbang Wealth Equity Investment Fund Management (Beijing) Co. Ltd. to acquire the beneficiary rights in the principal amount of RMB15 million (USD 2.42m) under the Asset Management Scheme, which is used to finance the construction of a natural gas project in Qujing, Yunnan to be managed and operated by Yunnan Jiadao Investment Company Limited (Yunnan Jiadao). The full amount of the beneficiary rights will be repurchased by Zhongbang Wealth at an amount of RMB 16.8 million (USD 2.71m).
Yunnan Jiadao invests in refitting and assembling of natural gas heavy trucks, and the building and operation of natural gas refueling stations for heavy trucks in Quing, Yunnan Province. Yunnan Jiadao has entered into an investment cooperation agreement with the People’s Government of Quijing, and was granted the investment project registration certificates in respect of the construction of 9 LNG refueling stations and the plant for the refitting and assembling of natural gas heavy trucks in Qujing.
The Group has designated natural gas business as the Group’s priority for its future business development, and considered that the five provinces in South Western China (including Guizhou Province, Sichuan Province, Yunnan Province and Chongqing) will be one of the major target locations. The People’s Government of Qujing promotes the three-year action plan for “Qujing gasification” and encouraged the use of natural gas to replace other traditional energy supply by accelerating the building and establishment of (i) natural gas network,(ii) LNG storage and supply facilities, and (iii) natural gas refueling stations for vehicles in Qujing.
It expected that the use of natural gas will be widely expanded to various vehicles including public transportation and heavy trucks and required all new vehicles to be either oil and natural gas dual fuelled or natural gas fuelled. To support the policy of natural gas usage promotion, there will also be relevant tax benefits, fees exemption and government subsidies for the enterprises or residents with natural gas usage in Qujing.
Mr. Tommy Cheng, Chairman and Executive Director of Blue Sky Power Holdings Limited, said, “In view of the abovementioned favourable government policies and the natural gas investment opportunity secured by Yunnan Jiadao, the Company considered that Yunnan Jiadao should have huge potentials”.
Blue Sky Power Holdings Limited has also entered into agreements to acquire other natural gas business in the PRC, including Shandong, Jiangsu, Hubei, Hainan, Sichuan and Liaoning Provinces. The Conpany already operates L/CNG refilling stations for vehicles in such localities as Benxi City of Liaoning Province, Yucheng City of Shandong Province, Haikou City of Hainan Province, and Liupanshui City of Guizhou Province.
(Source: Blue Sky Power Holdings Limited)