China, Wuhan
Sinoenergy Corporation a manufacturer of compressed natural gas (CNG) vehicle and gas station equipment as well as designer, developer and builder of CNG stations in China has announced that its 90% owned subsidiary, Wuhan Sinoenergy Gas Co. (Wuhan Sinoenergy), has received approval from the Wuhan municipal government to build four of the Company's natural gas filling stations in the Wuhan government's firstnatural gas filling station construction program in 2007.
Wuhan Sinoenergy is expected to begin its CNG station operations before September of 2007. The estimated investment requirement for the four stations will be
approximately US$3 million.
With an area of 3,269 square miles and a population of 8 million, Wuhan is the largest city in central China. It currently has more than 5,000 buses and approximately 20,000 taxis. To generate the same amount of energy, the cost of using CNG is only 60% that of gasoline. As a result, the number of CNG automobiles is increasing rapidly even without any government subsidy. The municipal government also plans to authorize the construction of 69 CNG gas stations by 2010.
The approval gives Sinoenergy, through its Wuhan Sinoenergy subsidiary, municipal government approval to design, build and operate CNG stations with a non-exclusive concession right of 20 years. Having secured natural gas supply from the main pipeline operated by PetroChina and market access from Wuhan municipal government, the Company is seeking approval to build two CNG mother stations and 20 CNG sub-stations over the next two years.
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