Clear The Air Energy Blog Rotating Header Image

China Resources To Buy More Gas Projects

Reuters in Hong Kong – Updated on Oct 02, 2008 – SCMP

China Resources Gas Holdings, the urban gas distributor to be bought by China Resources Logic this month, intends to buy 22 projects from its parent while seeking to invest in an industry rival, a top executive from the firm said on Thursday.

China Resources, which now operates gas distribution projects in seven cities, plans to buy another 22 already-operating city gas projects from its unlisted parent firm at “an appropriate time”, general manager Wang Chuandong said.

Mr Wang declined to give a timeframe or cost for the acquisition, but said the parent company â the sprawling beer-to-retail China Resources conglomerate â is also in talks to acquire another 20 city gas projects across the mainland.

China Resources, which vies with Xinao Gas, China Gas and Hong Kong and China Gas in piping gas across the world’s No 2 energy consumer, is also in talks to take a stake in rival Zhengzhou Gas, a distributor in the central province of Henan.

CR Logic, which used to make semiconductors, proposed in August to buy China Resources Gas for HK$3.8 billion, transforming itself into the city gas distribution flagship for the entire group.

The erstwhile technology company is now considering selling out of its cement business in the long run, to focus on the fast-growing gas business, said Ken Ong, executive director and CFO of CR Logic.

Gas demand is expanding at a double-digit percentage clip as Beijing, which relies on coal to fire three-quarters of its energy but hopes to reduce emissions of pollutants by a tenth by the end of the decade, pushes more environmentally friendly fuel.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>