(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 1083)
Acquisition of piped city gas projects in Xinjin (新津縣), Sichuan Province
(22 December 2008) Towngas China Company Limited (1083) announces its
acquisition of the respective 60% equity stakes in each of 新津縣地源天然氣有限責
任公司(Xinjin Diyuan Natural Gas Co. Ltd.) and 新津南方天然氣有限公司 (Xinjin
Nanfang Natural Gas Co. Ltd.), both established in Xinjin, Sichuan Province, at a
total consideration of approximately RMB60 million on 6 December 2008.
Being focally developed as the southern gateway to Chengdu, Xinjin is establishing
itself as Chengdu’s backyard and an integral part of the Chengdu metropolis. With
Chengdu at the forefront of the state policy of integrating the development of rural
and urban areas, Xinjin is expected to see rapid growth and development.
Xinjin, with proven achievements of industrialization, serves as the pioneer in
Sichuan Province in building up a fast-growing private economy sector. The Xinjin
Industrial Park is a popular destination for industrial enterprises seeking to move their
manufacturing bases away from Chengdu, or from the provinces of Jiangsu and
Zhejiang. A chain of fine chemicals manufacturers, among others, have settled in the
park, providing huge potential for industrial gas consumption.
Investment will be made to expand and improve the existing gas operations of the
project. The gas sales volume was 12.3 million cubic meters in 2007, with 31%
sales to residential customers and 69% to commercial & industrial customers. In
2012, the gas sales figure is expected to reach 66 million cubic meters and is likely to
exceed 100 million cubic meters in the long run. The number of residential users is
expected to grow from 17,000 to 40,000 in 2012 and 83,000 in the long run.
In addition to piped city gas business, investment will also be made to the business of
compressed natural gas filling station for vehicles for capturing a faster growth in gas
These new investments will add synergies for Towngas China’s businesses in Sichuan,
while also enabling the group to build a greater sphere of influence in the Sichuan
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