London-listed Fortune Oil has signed an agreement with China’s Tianjin Gas to form a joint venture to supply liquefied natural gas to the city of Tianjin in northern China.
The joint venture will procure, import and supply LNG to Tianjin Gas which is responsible for gas supply and operations to 18 districts and counties in Tianjin City, with over 95% of the market, and owns 9000 kilometres of gas pipelines.
Tianjin Gas is also a major shareholder in the Tianjin LNG import and regasification terminal which is expected to import 2.2 million tonnes per annum of LNG from 2013 using a floating storage and regasification unit, with plans to expand capacity to 6 million tpa from 2015.
“Today’s announcement is a further example of Fortune Oil’s commitment to expanding its natural gas business in China,” said Fortune Oil chief executive Tee Kiam Poon.
“LNG imports will be a major source of Chinese natural gas supply and this joint venture enables Fortune Oil to utilise its international experience and align itself with the largest city gas company in Tianjin, establishing Fortune Oil in the rapidly expanding LNG supply chain.”
Fortune Oil will hold a 60% interest in the joint venture, with Tianjin Gas holding the remaining 40% interest.
London-listed Fortune Oil has signed an agreement with China’s Tianjin Gas to form a joint venture to supply liquefied natural gas to the city of Tianjin in northern China.
