New Times Energy Corporation Limited (New Times Energy, the ‘Group’), a Hong Kong-based integrated natural resources company, has commenced operations of its first LNG/CNG station, in Liupanshui City, Guizhou Province. The Group conditionally agreed to acquire a series of integrated liquefied natural gas (LNG) projects in Liupanshui City, Guizhou Province back in mid-November 2012 and the first station commenced operation on 28 December 2012. A total number of 17 LNG/CNG stations will commence operation in 2013, thereby strengthening it’s LNG business in Guizhou Province.
The gas station has signed a sales contract with a local public transportation company to provide compressed natural gas (CNG) to 41 public vehicles with a daily consumption of approximately 60 cubic meters per vehicle. The contract guarantees a definite amount of natural gas sales which ensures a steady income during the early stage of operation of the gas station.
The opening ceremony was attended by several government officials from the Zhong Shan Economic Development Zone, such as Mr. Zhang Zhixiang, the Public Secretary of Zhong Shan Economic Development Zone, demonstrating the local government’s support to New Times Energy. The ceremony signified New Times Energy’s official engagement in LNG/CNG stations in China.
Guizhou Province is situated on the eastern part of Yunnan-Guizhou Plateau in Southwest China and is experiencing a rapid economic growth with a Gross Domestic Product (GDP) of RMB570 billion in 2011, an increase of 15% from the previous year. It is the main coal production region in Southern China, securing the need for LNG/CNG stations for heavy duty trucks in long distance transportation. Along with the commencement of the China-Myanmar Gas Pipeline next year, one of China’s 4 major oil & gas pipelines, an abundant natural gas supply will be available in Guizhou Province. Furthermore, the increasing concern to address environmental issues also enhances natural gas application, thereby securing promising opportunities for New Times Energy.
Mr. Stewart Cheng, Chairman and Executive Director of New Times Energy, said, “I am delighted to see the successful commencement of the LNG/CNG station in such a short period of time. Government policies continue to strongly promote clean energy application as well as substituting traditional fuel with natural gas. With LNG being readily available, living standards will be improved and pollution levels will be reduced, thus achieving a win-win situation. This creates great opportunities for the Group to further enhance its business portfolio as well as providing a solid foundation for mid-long term development in the natural gas business.”
Mr. Sun Jiang Tian, Executive Director of New Times Energy, said, “The commencement of operation of the LNG/CNG station indicates New Times Energy’s commitment to providing natural gas to local logistics and transportation end users in Guizhou Province. Other LNG/CNG stations will adopt a similar business model and will aim to secure definite natural gas sales with various business partners before commencement of operation of the stations. This allows New Times Energy to achieve its expected sales volume within the shortest period possible.”
(This article compiled using information from a New Times Energy Corporation Limited press release)
