Hong Kong-listed China City Natural Gas Holdings has announced that a 50-50 joint venture it holds with the China Oil and Gas Pipeline Bureau (China Gas Bureau) has been granted an eight billion yuan (about HK$7.49 billion) credit line to finance piped-gas infrastructure projects.
At a press conference yesterday, executive director George Lin said Agriculture Bank of China's Shenzhen branch granted the funds to the venture, called China City Natural Gas Company Ltd (CCNGCL).
The China Gas Bureau, which develops and operates natural gas pipeline networks in China, is a subsidiary of stated-owned enterprise China National Petroleum Corp (CNPC). CNPC is the parent of Hong Kong-listed PetroChina, the country's largest oil company.
Mr Lin said the venture planned to use the funds for piped-gas networks in about 50 mainland cities.
'The credit facility will be enough to finance 70 per cent of investment needed in those projects,' Mr Lin said.
One billion would be drawn on to fund existing pipeline projects in eight cities. CCNGCL has secured the propriety operation rights of piped natural gas in cities such as Xining, Tianjin (Binhai district) and Binzhou.
