China Gas to Buy China's Leading LPG Distributor       

On March 26th, China Gas Holdings Ltd (HK: 0384), a piped-gas supplier, announced it plans to buy a 53% stake in Zhongyou Huadian Energy Co., Ltd. for a consideration of RMB318 million, from the four shareholders including China Petroleum Pipeline Bureau under China National Petroleum Corporation (CNPC).
   Zhongyou Huadian is a leading LPG distributor in China, focusing on sales of LPG and liquid chemicals. The company has four storage bases for liquid chemicals with 50 thousand tonnage wharf for LPG each and owns seven small-scale docks. As of December 31st, 2007, Zhongyou Huadian has the total audited assets of RMB3.56 billion and the net assets of RMB284 million. The company sold 1.05 million tons of LPG in 2007.
   China Gas said it would commence imports of energy products, including LPG. The acquisition would allow China Gas to supply LPG to previously unreachable rural and suburban areas.
   China Gas has signed an agreement with Oman Oil to import fuel products from the Middle East, to secure a supply of gas for Chinese market.
   To meet the surging demand for cleaner fuels in China, China Gas and its bigger rivals the Hong Kong and China Gas Company Limited and Xinao Gas Holdings Ltd. are boosting gas sales. China Gas aims to sell 1.8 billion to 2 billion cubic meters of natural gas in the next fiscal year ending March 2009.