Towngas Signs Natural Gas Project Agreements in the Eastern
Part of Beijing Economic-Technological Development Area and
Xian Hi-tech Industrial Development Zone
(Hong Kong, 28 November, 2004) The Hong Kong and China Gas Company
Limited (Towngas) has signed a joint venture agreement with Beijing Gas
Group (Beijing Gas), China’s largest gas company, to establish a city piped gas
joint venture in the eastern part of Beijing’s Economic-Technological
Development Area (Eastern Zone). The agreement marks Towngas’ first
investment in northern China and the company’s first joint gas project in the
country’s capital. Under the agreement, Towngas holds a 50% stake in the new
joint venture and has management rights. The joint venture involves a total
investment of RMB 110 million for a term of 25 years.
Towngas Managing Director Alfred Chan Wing-kin said, “Being our first joint
venture in the capital, this project has immense strategic value and is a
milestone progress for Towngas’ development in the mainland. Following our
many successful joint ventures in eastern and central China, this project will
serve as a model for Towngas’ future joint projects in other cities in northern
China. Working in partnership with Beijing Gas will also pave the way for
further collaboration in the future.”
Situated in southeastern Beijing, the Beijing Economic-Technological
Development Area (BDA) commands strategic location: it is 25km from the
Beijing Capital International Airport, 5km from the capital’s major highway
hub for cargo transport, and 1km from its international logistics centre. The
BDA was positioned as a state-level development area in 1994. Over 1,300
enterprises have already set up operations in the 46.8 sq. km. BDA, attracting
investments of over US$6 billion.
The BDA’s eastern zone occupies about 14 sq. km. The project and the local
gas market enjoy promising prospects. Gas consumption is projected to reach
76 million cubic metres by 2008 and 170 million cubic metres by 2015.
Towngas Managing Director Alfred Chan Wing-kin further added, “Towngas’
establishment of a gas joint venture in Beijing is of significant strategic
importance for its business development in northern China and its overall
investment. The project will enhance the company’s exploration of other
opportunities in neighboring region and the mainland gas market as a whole.”
Meanwhile, Towngas, through its subsidiary ECO Energy Company Limited
(ECO), has signed a framework agreement with the management committee of
the Xian Hi-tech Industrial Development Zone (XDZ) on 24 November 2004 to
develop a wholly-owned “Heating and Cooling Co-Generation” energy project
in the Central Business District of the XDZ. The project, involving an
investment of approximately 300 million yuan, will supply energy for heating
and commercial cooling systems in the Central Business District. In addition to
natural gas filling stations, this is the second energy project ECO invested in
Xian.
The newly developed Central Business District occupies an area of 2 sq. km
and is situated at the heart of the XDZ, to the southwestern part of Xian. The
Central Business District will provide 2.5 million sq. m. of commercial floor
area for company headquarters, management offices, financial institutions,
conference centers, hotels and other commercial premises, along with 700,000
sq. m. for residential housing. Xian’s demand for cooling and heating facilities
is enormous given its distinct seasons. In view of the mainland’s tight
electricity supply, a national clean energy policy, and the Central Business
District’s strong development prospects, Towngas anticipates huge growth
potential for this Xian energy provision project.
About The Hong Kong and China Gas Company Limited
Founded in 1862, The Hong Kong and China Gas Company Limited (Towngas)
was the first public utility in Hong Kong. With a pipeline network of over
3,000 km and an 85% economic reach, the Company supplies town gas to over
1.5 million customers in the territory. Its core business comprises production
and distribution of gas, marketing of gas and appliances, and comprehensive
after-sales services. In recent years, Towngas has diversified into various green
businesses including LPG filling stations and the utilization of landfill gas.
In the past ten years, Towngas has actively developed a city piped gas business
in mainland China. Apart from participating in the Guangdong LNG Project,
Towngas also operates city piped gas joint ventures in the Pearl River Delta –
namely Shenzhen, Panyu, Zhongshan, Shunde, Guangzhou Dongyong, and
Guangzhou Science City; in Jiangsu Province - namely Nanjing, Suzhou
Industrial Park, Zhangjiagang, Yixing, Changzhou, Taizhou, Xuzhou, Wujiang
and Danyang; in Shandong Province – namely Jinan East, Weifang, Weihai,
Taian, Qingdao-Jimo and Laoshan Hi-Tech Industrial Development Zone, Zibo
and Longkou; in Anhui Province – namely Maanshan and Anqing; in Zhejiang
Province – namely Tongxiang; and in Wuhan in Hubei Province etc. The
Company also recently announced its participation in a midstream gas project
in Anhui Province.
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For enquiries:
Corporate Communications Department
The Hong Kong and China Gas Company Limited
Tel: 2963 3493
Fax: 2516 7368
E-mail: ccd@towngas.com
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www.towngas.com.