Sino Gas International: Update on Guyuan County Project and Baoding Gas Company
October 31 2008 - 2:39AM
PR Newswire (US)
Beijing Zhongranweiye Signs Franchise Agreement with Guyuan County
BEIJING, Oct. 31 /Xinhua-PRNewswire-FirstCall/ -- Beijing
Zhongranweiye Gas Co., Ltd. a fully owned subsidiary of Sino Gas
International Holdings (OTC:SGAS) (BULLETIN BOARD: SGAS) , signed
franchises agreement with Guyuan County of Zhangjiakou City On Sep
9th 2008, Beijing Zhongranweiye Gas Co., Ltd. signed a franchise
agreement with the government of Guyuan County of Zhangjiakou City.
The franchise agreement grants the company exclusive right to
develop its natural gas distribution network and supply natural gas
in the operational location for 30 years. Beijing Zhongranweiye Gas
Co., Ltd. will establish a subsidiary in Guyuan County and expect
to invest RMB3.5 million in phase one of the project. According to
the city development plan, the newly connected households will be
at least 3000 annually in the next 3 years. The Guyuan natural gas
project will improve the infrastructure of Guyuan county, enhance
the living quality of city residents, and reduce pollution. Update
on Baoding Gas Company: At the beginning of 2008, Sino Gas
Construction Limited ("Sino Gas Construction"), a fully owned
subsidiary of Sino Gas International Holdings, Inc., signed an
agreement with Baoding Gas Company in Baoding public utility group
in Baoding, Hebei province. Baoding is the largest city in Hebei
province of China. Sino Gas Construction planed to acquire Baoding
Gas and had paid RMB 30 million as deposit according to the
agreement. Due to market condition and under the impact of the US
financial market crisis, Sino Gas Construction could not secure
financing required for the acquisition. In the third quarter, Sino
Gas Construction retrieved the full deposit of RMB 30 million.
However, Sino Gas Construction will continue to monitor the Baoding
project. If the required financing is in place in the future, Sino
Gas Construction will negotiate the acquisition again. DATASOURCE:
Sino Gas International Holdings CONTACT: Jiang Zhou,
+86-10-8260-0040 x883, or
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