China Natural Gas, Inc.’s variable interest entity Xi’an Xilan Natural Gas Co., Ltd. (Xilan) has signed a Strategic Cooperation Framework Agreement with China National Petroleum Corporation Kunlun Natural Gas Co., Ltd. (CNPC Kunlun), a wholly owned subsidiary of China National Petroleum Corporation and the largest supplier of CNG in China. Under the Agreement a joint venture company will be created to process and distribute compressed natural gas (CNG) throughout China.
The JV will build and operate CNG compressor stations, as well as the fueling stations that the CNG is supplied to, in cities along the natural gas pipelines of CNPC.
This mother-daughter CNG station program is planned to be established in 20 cities throughout China along CNPC’s existing natural gas pipelines during the initial two years from the date of the Agreement. CNPC Kunlun will hold 51% ownership of the JV, and Xilan will hold 49% ownership of the JV.
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