Hong Kong-listed China Oil Gangran Energy Group Holdings Limited, until yesterday known as Fairson Holdings Limited, says its change of identity is a response to growing opportunities to develop natural gas and clean energy businesses in China. In particular the Group will focus on Government-accelerated opportunities for utilization of Liquefied Natural Gas (LNG) by the waterborne transportation industry.
China’s Ministry of Finance and Ministry of Transport have jointly issued Inland Ship Standardized Subsidy Fund Management Approach in April 2014, which states the subsidy criteria for newly-built Liquefied Natural Gas (LNG)-powered demonstration vessels and is seen as strong support for natural gas fuel utilization on vessels.
Besides, in considering of environmental protection and haze weather treatment, the National Ministry of Transport released Guiding Opinions on Accelerating the LNG Utilization in Waterborne Industry in 2013, which requires that by the end of 2020, the percentage of LNG fuel consumption on inland transportation vessels should be above 10%.
China Oil Gangran Energy Group seeks to grasp opportunities arising out of the National “12th Five-Year Plan” for the natural gas industry. The Group formed a joint venture (JV) company, namely Jiangxi China Oil Gangran Energy Technology Company Limited, with Jiangxi Zhongyou Yingtai Natural Gas Limited Liability Company and Zhongwaijian Engineering Construction Limited in 2013. The Group is the controlling shareholder. The JV company owns patented LNG conversion technology for vessels, targeting diesel-powered vessels in Jiangxi province’s market. This dual-fuel technology (diesel and LNG) can save about 15% of vessel owners’ fuel costs while reducing 70% of nitrogen oxide emissions and prolonging engine life.
Mr. Ho Chun Kit Gregory, Executive Director of the Group, said that although the Company’s core business will be conversion of waterborne vessels to LNG, it will also instigate other business activities including City Natural Gas Sales, Vehicle Conversion to LNG, Taxi Compressed Natural Gas (CNG) sales, and Natural Gas Distribution.
(Source: China Oil Gangran)