Beijing Holdings forming JV in Inner Mongolia for coal-based gas work
Beijing. May 8. INTERFAX-CHINA - Hong Kong-listed Beijing Enterprises
Holdings Ltd. announced on Monday that its indirectly-owned subsidiary,
Beijing Gas Group, has inked a joint venture agreement with three
domestic companies to establish a coal-based gas project in China's
Inner Mongolia Autonomous Region.
The joint venture, named International Keqi Coal-based Gas Co., will be
jointly established by Beijing Gas Group, China Datang Corp. (CDC),
Datang Power and New Horizon Capital, in the Inner Mongolian city of
Chifeng. The four companies will hold stakes of 33 percent, 6 percent,
51 percent and 10 percent in the joint venture, respectively.
International Keqi Coal-based Gas Co. will be responsible for planning,
constructing and operating the Keqi Coal-based Gas Project, which
requires total investment of RMB 18.78 billion ($2.68 billion).
The project will exploit brown coal resources in the Shengli Coalfield,
which is located 5 kilometers from Xilinhaote City in Inner Mongolia.
The brown coal will be converted into natural gas through a process of
gasification, and then transmitted through a 440-kilometer pipeline to
Miyun County in Beijing Municipality.
The project, which will be constructed in three phases and completed in
2012, is designed to produce 4 billion cubic meters of natural gas per
year, along with various other by-products.
Gas produced by the project will supply Beijing as well as other cities
along the transmission pipeline, according to the announcement.
"We believe that this investment agreement will further strengthen
Beijing Gas Group's mid-stream gas transmission capabilities and bring
satisfactory returns for the group," company directors said in the
announcement.
Beijing Enterprises Holdings Ltd. listed on the Hong Kong Stock Exchange
in 1997, and specializes in gas and other infrastructure projects such
as road and water management.
-HJ
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